HSBC India Purchasing Managers’ Index (PMI) — a composite indicator designed to give an accurate overview of manufacturing operating conditions – climbed to a two-year high of 54.5 in December, up from 53.3 in the prior month.
In what could be a big sentiment boost, data showed that HSBC India Purchasing Managers’ Index (PMI) climbed to a two-year high of 54.5 in December, up from 53.3 in the prior month. The index is a composite indicator designed to give an accurate overview of manufacturing operating conditions.
Accelerated growth of the manufacturing sector was reflected by faster expansions in output, new business and foreign orders, noted the HSBC India release issed on Friday. Latest data also painted a brighter picture in terms of prices, as inflationary pressures eased during the month. Consumer Goods emerged as the best performing sector..
Commenting on the India Manufacturing PMI survey, Pranjul Bhandari, Chief India Economist at HSBC said: “Manufacturing activity momentum accelerated to a two-year high in December, led by a healthy increase in new orders from both at home and from abroad. A steep rise in new orders from the consumer sector more than offset a slowdown in new order growth from investment goods. In our view, a rise in the latter is critical for a meaningful pick-up in economic growth. In line with falling commodity prices over the last few months, input price inflation was modest, and this trend was also mirrored in output prices. With the disinflationary trend gaining ground, the RBI is expected to find space for some rate cuts in 2015.”
(Posted by Jhini Phira)
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