Mfg activities at 8 month high following rising demand
Updated: Dec 03, 2013 01:31:55pm
New Delhi, Dec 3 (KNN) India’s manufacturing sector activity witnessed an eight month high expansion in November, after contraction for three consecutive months, in the backdrop of rising new domestic orders, according to the widely-tracked HSBC Purchasing Managers’ Index (PMI).
The HSBC India Manufacturing PMI for the manufacturing industry climbed from 49.6 in October to 51.3 in November.
A reading below 50 indicates contraction, while one above it shows expansion.
This was the first manufacturing PMI reading above 50.0 since July and is the highest in seven months.
“Manufacturing activity picked up led by a rise in new domestic orders, which helped pull up output growth,” said Leif Eskesen, chief economist for India and Asean at HSBC.
According to Markit Economics, the firm which compiles the data, rise in orders led the firms to increase their production levels for the first time since April.
A robust demand resulted in new order growth and, also the rise in new work intakes ended a five-month period of contraction. Exports rose at a marginal and slower rate, suggesting the domestic market was the main source of new order gains, the firm said.
Merchandise exports increased by 11.9 per cent to USD 81.2 billion in the second quarter of 2013-14 on the back of significant growth especially in the export of textiles and textile products, leather and leather products and chemicals.
The PMI number came a few days after official figures showed that the gross domestic product (GDP) growth remained at sub-five per cent for the fourth quarter in a row during Q2 of 2013-14, indicating an uptick in factory production which may raise economic expansion as well. (KNN/SD)
The HSBC India Manufacturing PMI for the manufacturing industry climbed from 49.6 in October to 51.3 in November.
A reading below 50 indicates contraction, while one above it shows expansion.
This was the first manufacturing PMI reading above 50.0 since July and is the highest in seven months.
“Manufacturing activity picked up led by a rise in new domestic orders, which helped pull up output growth,” said Leif Eskesen, chief economist for India and Asean at HSBC.
According to Markit Economics, the firm which compiles the data, rise in orders led the firms to increase their production levels for the first time since April.
A robust demand resulted in new order growth and, also the rise in new work intakes ended a five-month period of contraction. Exports rose at a marginal and slower rate, suggesting the domestic market was the main source of new order gains, the firm said.
Merchandise exports increased by 11.9 per cent to USD 81.2 billion in the second quarter of 2013-14 on the back of significant growth especially in the export of textiles and textile products, leather and leather products and chemicals.
The PMI number came a few days after official figures showed that the gross domestic product (GDP) growth remained at sub-five per cent for the fourth quarter in a row during Q2 of 2013-14, indicating an uptick in factory production which may raise economic expansion as well. (KNN/SD)
Loading...
