HSBC Manufacturing PMI Rises For November 2013

Since the announcement of the GDP numbers for Q2FY14 on Friday, which were slightly better than the street's expectations, talks of green shoots have been rife.

To add to this, the HSBC India Manufacturing Manufacturing Purchasing Managers’ Index (PMI) for the month of November announced on Monday (December 2) has indicated expansion for the first time since July 2013. This rise is on back of new domestic orders received during the month. The PMI for the manufacturing industry climbed from 49.6 in October to 51.3 in November on the back of a rebound in new orders and output. It is important to note here that the 50-mark on this index differentiates growth from contraction.

Commenting on this, Leif Eskesen, HSBC Chief Economist for India and ASEAN, said, “Manufacturing activity picked up, led by a rise in new domestic orders, which helped pull up output growth.”

According to HSBC, the inflationary pressures in the Indian manufacturing economy softened in November. “Encouragingly, input and output price inflation eased, which, if sustained, could imply that the RBI is getting closer to the end of its tightening cycle, although it may still need to notch rates up a bit further”, Eskesen added.