Indian Manufacturing Rises for the 19th Month

By admin • November 2nd, 2010

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The manufacturing sector in India expanded to 57.2 in October 2010 from 55.1 in November according to the latest HSBC Purchasing Manager’s Index (PMI). The PMI is a survey of 500 companies, where anything above 50 indicates expansion and below 50 indicates contraction. The index has now risen for 19 consecutive months and has been credited to a large increase in business orders and increased output performance.

Manufacturers in India also reported a rise in employment for October 2010 as a result of the growth and the need for additional output from the new orders. “Growing employment suggests that domestic demand will remain robust,” said Frederic Neumann, Co-head of Asian Economics Research, HSBC. The rate of growth for new orders rose sharply in September 2010 from domestic demand and output increased significantly for October 2010.

With the Indian economy growing again, the manufacturing sector has been doing well, supported by strong domestic consumption. In addition to PMI, other demand-driven indicators, Domestic investment, corporate sales and earnings, are also showing signs of growth.

International Government Affairs & Corporate Relations Consultants for Emerging Markets

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