India factory output rises in August

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Indian factory output slowed slightly in August after jumping to a 17-month high the previous month, but growth remained strong, a key HSBC survey showed on Monday (Sep 1). The positive data came three days after new figures showed India’s economy grew by a higher-than-expected 5.7 percent in the first financial quarter, its best pace since early 2012.

The British banking giant said its Purchasing Managers’ Index (PMI), which measures factory production, eased to 52.4 points from 53.0 the previous month. The July figure had marked its best level since February 2013. In the survey, keenly watched as a harbinger of industrial expansion and economic health, a reading of more than 50 points suggests expansion while anything below indicates contraction.

“Momentum in the manufacturing sector eased in August following a sharp upswing in July. Despite the slowdown, growth remains robust relative to trend,” said the report. It noted an improvement in operating conditions in August “as solid output growth was supported by strong expansions in total new orders and business from abroad”.

Consumer goods were the prime driver of growth in August, while capital goods, a key indicator of economic activity, lagged behind. Business confidence has been building that Prime Minister Narendra Modi’s right-wing government, which took power in May, will initiate policy changes to propel growth and emulate China’s economic ascent, despite a budget last month that eschewed radical reforms.

But the economy still faces the risk of resurgent inflation, the HSBC survey suggested. “Price pressures remained elevated, despite the slight deceleration seen in input prices. This is likely to keep the central bank guarded against inflation risks, particularly from the pick-up in demand,” said Frederic Neumann, HSBC Asian economic research co-head.


Source : Channel News Asia | September 1, 2014

Thomas D’Innocenzi


About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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