Nikkei India manufacturing PMI dropped sharply into contraction territory (below 50) to 49.6 in December, largest MoM drop since November 2008.
Four of the five sub-components of the PMI edged below 50, while average delivery times lengthened further. At the sector level, operating conditions deteriorated in both the consumer and intermediate goods categories.
PMI data for December indicated that the rupee demonetisation took a toll on manufacturing performance. Manufacturing activity in India contracted for the first time in 11 months.