"At 54.7 in December, the Nikkei India Manufacturing Purchasing Managers' Index (PMI) rose from 52.6 in November". In fact, job creation accelerated to the strongest since August 2012, the survey said.
Panelists reported higher demand from both home and overseas, with growth of new export orders at a near seven-year high.
The slowdown was reflected in the drop in buying activity in December, the sharpest decline since September. As a outcome, the sector observed a modest increase in pre-production inventories for the first-time since June. India's retail inflation in November breached the central bank's medium-term target of 4 per cent, which could put pressure on it to raise policy rates in the coming months.
"However, the level of business sentiment eased from November's 47-month high and remainedweaker than the series average", it said in a note today.
Firms were more upbeat about their outlook and potential growth in 2018, as the future output index strengthened. Members of the survey team said late delivery was mainly due to the shortage of raw materials.
THE Philippines' manufacturing PMI showed further expansion in December although at a slightly slower pace than the previous month, buoyed by marked growth in both output and new orders, an IHS Markit/Nikkei survey found.
The uptrend was driven by stronger market demand from home and global markets, Dodhia added.
However, the sector continues to face some turbulence as delayed customer payments contributed to greater volumes of outstanding work.
"Businesses retained positive forecasts for outputover the next 12 months (on) projections of an improvement in underlying demand conditions", it noted.