10.5 C
London
Tuesday, March 19, 2024
HomeBusinessIndia factory output ups by two-year high, says survey

India factory output ups by two-year high, says survey

Date:

Related stories

Nikhil Rathi defends FCA’s plans for retail customer protection

THE chief of Britain’s financial watchdog has defended its...

One in three black women don’t expect to retire

Black and Asian women are facing significant challenges throughout...

New government should ensure stable economic growth, says John Lewis chief

John Lewis Partnership chief executive Nish Kankiwala wants the...

Super-thin semiconductor fibres make fabrics wearable electronics

Researchers at Nanyang Technological University, Singapore (NTU Singapore) have...

Vodafone sells Italian unit to Swisscom

British mobile phone operator Vodafone said Friday it has...

INDIAN factory output expanded at its quickest pace in two years last month, a key survey showed on Friday (January 2), in a further sign that the economy is picking up under new Prime Minister Narendra Modi.

Banking giant HSBC said that its purchasing managers index (PMI) rose to 54.5 points in December, up from 53.3 in the previous month.

In the survey, which is seen as a harbinger of industrial expansion and economic health, a reading of more than 50 points suggests expansion while anything below indicates contraction.

“Manufacturing activity momentum accelerated to a two year high in December, led by a healthy increase in new orders,” said Pranjul Bhandari, chief economist at HSBC.

The survey suggested a continuing sharp fall in input prices such as oil could create “space for some rate cuts” in 2015.

Earlier this month, the Reserve Bank of India hinted that it would be in a position to lower interest rates if price pressures continued to ease.

But the survey sounded a cautious note on the pace of recovery in Asia's third-largest economy, saying it was “critical” that demand for investment goods, such as heavy machinery, outpaced demand for consumer goods.

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

LEAVE A REPLY

Please enter your comment!
Please enter your name here

two × one =