India factory output at 2-year high

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Indian factory output expanded at its quickest pace in two years last month, a key survey showed Friday (Jan 2). 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.

Indian factory output expanded at its quickest pace in two years last month, a key survey showed Friday (Jan 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.

Modi’s right-wing Hindu nationalist party won a landslide general election in May but his government has been struggling to step up the pace of reforms to revive the stuttering economy due to opposition in India’s upper house of parliament.

 

Source : Channel News Asia | January 5, 2015

Thomas D’Innocenzi

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About thomasdinnocenzi

Thomas D’Innocenzi is a highly accomplished, results-focused international consultant with extensive experience in global sourcing and business development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global marketing and sourcing operations. He has extensive experience in international business development to accommodate rapid growth. Skilled in building top-performing teams, bench-marking performance, and developing organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. Tom founded Nova Advisors with the mission of providing expert Global Business Development consulting services for companies seeking to expand their market share as an independent consultant. Tom has a network of experts and advisors throughout the Asia-Pacific region and North America. His expertise includes business development, global sourcing, manufacturing, commodities, logistics, QA/QC, FDA, regulatory compliance, sustainability, and supply chain optimization. Tom is experienced in the medical device, apparel, consumer goods and technology services verticals helping companies advance their global sourcing capabilities and develop new markets through a local and sustained approach. Located in SE Asia and the United States, Tom expands market reach to drive sales. His global sourcing strategy includes directly negotiating with commodity suppliers, supply chain networks and distributors for optimal terms based on his expertise and first-hand knowledge of the players. Contact Tom to use his consulting service to increase your global market and make global sourcing profitable for you in the Asia Pacific Region and the United States. http://www.NovaAdvisors.com thomas@NovaAdvisors.com USA Direct: +1.904.479.3600 SINGAPORE: +65.6818.6396 THAILAND: +662.207.9269
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