New Delhi:  India’s factory activities lost momentum in December 2025 as new orders, output and sales slowed down during the month, as per a private survey released on Friday.

The HSBC India manufacturing purchasing managers’ index (PMI) compiled by S&P Global fell from 56.6 in November to 55 in December this year, marking the weakest improvement in the health of the sector in the last two years.

A PMI score below 50 means contraction while above it shows expansion in activities. The survey compiled by S&P Global is one of the closely-watched high frequency economic indicators by policymakers, economists and market-watchers.

The India manufacturing PMI survey is based on responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers.

Despite the manufacturing PMI easing in December 2025 it remained above its long-run average.

The survey noted that employment grew at its slowest pace in the last 22 months.

Commenting on the survey findings, Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence said that even as growth momentum eased in December, India’s manufacturing industry wrapped up 2025 in good shape.

“The sharp rise in new business intakes should keep companies busy as we head into the final fiscal quarter, and the lack of major inflationary pressures could continue to support demand,” Lima said.

As per the survey, intakes of new work rose at a sharp rate during the month under review but was the weakest since December 2023. Similarly, output levels expanded at the slowest pace since October 2022.

The survey said that part of the slowdown in total sales reflected a softer increase in international orders.

“New export orders rose to the least extent in 14 months. Where growth was signalled, panelists cited better demand from clients in Asia, Europe and the Middle East,” the survey highlighted.

The survey noted that as new orders grew more slowly in December 2025, companies reduced their input purchases. Buying activity still increased, but at the slowest pace in the last two years.