Manufacturing shows marginal improvement in Dec, PMI inches up to 56.4

One area that failed to show an improvement was employment, with jobs being shed once again at the end of 2020

Manufacturing sector activity showed a marginal improvement in December compared to the previous month even as employment generation remained low, showed a widely-tracked IHS Markit purchasing managers’ index (PMI) survey. PMI inched up to 56.4 in December compared to 56.3 in November. 

However, it remained lower than 58.9 in October and 56.8 in September, the two months when the economy saw lifting of lockdowns. A reading above 50 shows growth, while the print below 50 means contraction.

While firms were able to lift input stocks, and did so at the quickest rate in nearly a decade, holdings of finished goods decreased sharply