Modest growth in factory output during Oct: HSBC
Updated: Nov 03, 2014 02:12:26pm
New Delhi, Nov 3 (KNN) Factory output has picked up modestly during October amid stronger output and new order flows, particularly from overseas clients, according to a HSBC survey.
Adjusted for seasonal influences, the headline HSBC India Purchasing Managers’ Index, a composite indicator designed to give a single-figure snapshot of manufacturing operating conditions–rebounded from September’s nine-month low of 51.0 to 51.6 in October, said an official release.
The latest reading was consistent with a moderate improvement in business conditions during the month. “Sector data highlighted intermediate goods as the best-performing of the three monitored subcategories. Amid reports of stronger demand, production at Indian manufacturers rose for the twelfth successive month in October,” said the release.
Moreover, the pace of output growth accelerated from the prior month and was solid overall, it added.
"Manufacturing activity picked up modestly amid stronger output and new order flows, particularly from overseas clients," HSBC Co-Head of Asian Economic Research Frederic Neumann said.
New business also increased for the twelfth month in a row in October, largely owing to the general improvements in demand situation.
In addition, export orders received by Indian manufacturers rose in October, extending the current sequence of growth to 13 months.
However, firms continued to trim purchases and refrained from aggressive inventory accumulation, the HSBC survey report said.
On prices, it said that inflationary pressures remained muted in October. While input prices eased further, the improvement in growth allowed firms to raise margins by increasing output prices slightly.
"This trend could strengthen with growth, which is why the RBI will remain cautious about relaxing its grip at this juncture," Neumann said. (KNN/SD)
Adjusted for seasonal influences, the headline HSBC India Purchasing Managers’ Index, a composite indicator designed to give a single-figure snapshot of manufacturing operating conditions–rebounded from September’s nine-month low of 51.0 to 51.6 in October, said an official release.
The latest reading was consistent with a moderate improvement in business conditions during the month. “Sector data highlighted intermediate goods as the best-performing of the three monitored subcategories. Amid reports of stronger demand, production at Indian manufacturers rose for the twelfth successive month in October,” said the release.
Moreover, the pace of output growth accelerated from the prior month and was solid overall, it added.
"Manufacturing activity picked up modestly amid stronger output and new order flows, particularly from overseas clients," HSBC Co-Head of Asian Economic Research Frederic Neumann said.
New business also increased for the twelfth month in a row in October, largely owing to the general improvements in demand situation.
In addition, export orders received by Indian manufacturers rose in October, extending the current sequence of growth to 13 months.
However, firms continued to trim purchases and refrained from aggressive inventory accumulation, the HSBC survey report said.
On prices, it said that inflationary pressures remained muted in October. While input prices eased further, the improvement in growth allowed firms to raise margins by increasing output prices slightly.
"This trend could strengthen with growth, which is why the RBI will remain cautious about relaxing its grip at this juncture," Neumann said. (KNN/SD)
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