India and Global PMI Trends Indicate Accelerated Growth as 2024 Unfolds
India's Flash PMI December 2024
India's Flash Purchasing Managers’ Index (PMI) for December 2024, reported by HSBC, paints a picture of robust economic momentum. The Composite PMI came in at 60.7, a notable rise from November's 58.6, signaling an acceleration in both the manufacturing and services sectors. This strong performance helps dispel fears of a slowdown triggered by the subdued GDP growth figures in the July-September quarter. The manufacturing sector expanded at its fastest pace in recent months, while services continued to drive economic dynamism, supported by resilient domestic demand.
The robust PMI numbers underline India’s economic resilience, supported by:
- A surge in new orders in both sectors.
- Stabilized inflationary pressures, providing relief to businesses and consumers.
- Policy measures encouraging investments and fostering growth.
Global PMI Highlights: Early 2024 Optimism
Globally, the PMI data for early 2024 indicates similar trends of recovery and optimism:
- The Global PMI reached 51.8 in January 2024, a seven-month high, signaling broad-based expansion in manufacturing and services.
- Key economies such as the US, Japan, UK, and India led this growth, while downturns moderated in Canada, Australia, and the eurozone.
- Emerging markets showcased strong momentum, with India standing out for its accelerated growth.
Sectors such as financial services and consumer goods led the recovery globally, with easing inflationary pressures encouraging business investments. Improved hiring trends and a reduction in supply chain disruptions have further bolstered optimism.
India’s Role in the Global Context
India's consistent PMI readings position it as a leader among emerging markets. While global GDP growth estimates remain below pre-pandemic averages, India continues to outperform, buoyed by robust domestic consumption, infrastructure development, and manufacturing expansion under initiatives like "Make in India."
Conclusion
The latest PMI data for both India and the global economy reaffirms a positive outlook for 2024. With inflation easing and financial conditions improving, businesses across sectors can look forward to a year of steady growth and opportunities for expansion.