Factory upsurge lifts India economic outlook
01/07/2014 16:12
Factories in India boosted output at the fastest pace since February in June as demand rose, signaling a revival in Asia’s third biggest economy, which has expanded below the 5 per cent mark for the past several quarters, reducing pressure on the Reserve Bank of India (RBI) to ease monetary policy in the near-term.
The gauge measuring Indian manufacturing activity rose to 51.5 in June from 51.4 in the previous month, HSBC and Markit Economics reported on Tuesday.
A reading above 50 signals expansion in manufacturing over the previous month.
This was the eighth straight month when manufacturing has stood in expansion territory.
New orders in the Indian manufacturing sector rose for the eighth month on the trot in June driven by robust demand from domestic and overseas markets. The consumer goods sector witnessed a strong surge in demand in June, the report added.
However, input and output price inflation accelerated in the Indian manufacturing sector in the month of June, raising bets that the RBI will continue to maintain a tighter policy in the coming months.
“Things are gradually improving in India's manufacturing sector. Output picked up in June, supported by growing order flows, especially from overseas”, the report said.
01/07/2014 16:12
Factories in India boosted output at the fastest pace since February in June as demand rose, signaling a revival in Asia’s third biggest economy, which has expanded below the 5 per cent mark for the past several quarters, reducing pressure on the Reserve Bank of India (RBI) to ease monetary policy in the near-term.
The gauge measuring Indian manufacturing activity rose to 51.5 in June from 51.4 in the previous month, HSBC and Markit Economics reported on Tuesday.
A reading above 50 signals expansion in manufacturing over the previous month.
This was the eighth straight month when manufacturing has stood in expansion territory.
New orders in the Indian manufacturing sector rose for the eighth month on the trot in June driven by robust demand from domestic and overseas markets. The consumer goods sector witnessed a strong surge in demand in June, the report added.
However, input and output price inflation accelerated in the Indian manufacturing sector in the month of June, raising bets that the RBI will continue to maintain a tighter policy in the coming months.
“Things are gradually improving in India's manufacturing sector. Output picked up in June, supported by growing order flows, especially from overseas”, the report said.
