India’s manufacturing activity cools in
August
01/09/2014 12:19
India’s manufacturing activity grew at a slower clip in the month of August as demand eased, however the rate of growth remained solid enough to signal a turnaround in the fortunes of Asia’s third biggest economy, which expanded at the fastest pace in more than two years last quarter, easing pressure on the Reserve Bank of India (RBI) to start loosening monetary policy.
The gauge measuring manufacturing activity in India fell to 52.4 in August from the 17-month high of 53 in July, HSBC and Markit Economics said in a report on Monday.
A reading above 50 signals expansion in manufacturing activity over the previous month.
Manufacturing activity has now expanded for ten straight months in India, the report said.
New orders received by Indian factories rose for the tenth month on the trot driven by solid domestic demand and robust bookings from key export clients.
Inflation in the manufacturing sector remained elevated in August, meaning that the RBI may continue to keep interest rates at high levels in the near-term to guard against rising prices.
“Manufacturing activity moderated following a spurt in the previous month. Output and new orders slowed slightly in August, but remained robust relative to their 12-month history”, HSBC said.
01/09/2014 12:19
India’s manufacturing activity grew at a slower clip in the month of August as demand eased, however the rate of growth remained solid enough to signal a turnaround in the fortunes of Asia’s third biggest economy, which expanded at the fastest pace in more than two years last quarter, easing pressure on the Reserve Bank of India (RBI) to start loosening monetary policy.
The gauge measuring manufacturing activity in India fell to 52.4 in August from the 17-month high of 53 in July, HSBC and Markit Economics said in a report on Monday.
A reading above 50 signals expansion in manufacturing activity over the previous month.
Manufacturing activity has now expanded for ten straight months in India, the report said.
New orders received by Indian factories rose for the tenth month on the trot driven by solid domestic demand and robust bookings from key export clients.
Inflation in the manufacturing sector remained elevated in August, meaning that the RBI may continue to keep interest rates at high levels in the near-term to guard against rising prices.
“Manufacturing activity moderated following a spurt in the previous month. Output and new orders slowed slightly in August, but remained robust relative to their 12-month history”, HSBC said.
