India Manufacturing PMI Hits Two-Year High
Published By : 02 Jan 2015 | Published By : QYRESEARCH
Factory PMI (purchasing managers’ index) in India hit a high of 54.5 in December 2014, the highest since December two years ago. This is in line with the continued trend of expansion seen in India’s PMI since that high mark two years ago. A mark above 50 is seen as expansion, whereas a mark below 50 counts as a contraction.
Markit Economics revealed this piece of data after a survey spanning 350 private companies, adding that the rate of improvement in business conditions in India had been the highest in December 2014, with consumer goods topping that list of sectors. Meanwhile, global commodity prices dropped, helping keep inflation under control and allowing the Reserve Bank of India some leeway in lowering the policy rate to help expand the economy.
Though these numbers don’t entirely agree to the official findings of the Index of Industrial Production, the two standards agreed that capital goods production had decreased in October, 2.3% down from last year, but manufacturing picked up in December, leading to the high PMI rating. The latter was already at a 21-month high in November, before breaking through even higher the next month. The IIP findings reveal the downslide in the production of consumer goods in 2014. It was down 35.2% from 2013 in October, while consumer non-durables were down by 4.3%. India’s manufacturing growth rate dropped to a five-year low 7.6% in the same month, lending extra sheen to the high PMI score in December.
These developments failed to have a positive effect on the job market, though, which remained tight with reports of layoffs in numerous companies.