MUMBAI, Feb. 1 (Xinhua) -- India's manufacturing purchasing managers' index (PMI) in January fell to a four-month low at 54 from 55.5 in the preceding month of December 2021 as the new wave of COVID-19 had a mild impact.
The index compiled by London-based IHS Markit signalled the weakest count in the economy since September last year though the headline figure remained above its long-run average of 53.6.
Operating conditions across the manufacturing sector in Asia's third largest economy improved in the first month of 2022, though the new COVID-19 wave restricted growth.
January data showed the slowest increases in new orders and output in four months, but rates of expansion remained historically elevated amid softer upturn in input buying, IHS Markit said in a statement.
Commenting on the January data, economics associate director at IHS Markit Pollyanna De Lima said, "Survey participants were concerned that production growth would be hampered by inflationary pressures, the escalation of the pandemic and any new restrictions it would bring. The overall level of business confidence tumbled to a 19-month low."
Tamed business optimism contributed to another monthly decline in manufacturing jobs though the fall was modest. Several companies indicated that workforce numbers were sufficient to cope with current production requirements, the IHS Markit statement said.
"Companies sought to rebuild input stocks by purchasing additional raw materials and semi-finished items, but uncertainty surrounding growth prospects resulted in further job shedding," De Lima said.
The overall rate of inflation eased to a four-month low, but remained above its long-run average as output charges were raised at a quicker rate than in December 2021, the statement said. ■