See Search Box
lower down this column for searches of Finfacts news pages. Where there may be
the odd special character missing from an older page, it's a problem that
developed when Interactive Tools upgraded to a new content management system.
Finfacts is Ireland's leading business information site and
you are in its business news section.
The seasonally adjusted HSBC Purchasing
Managers’ Index (PMI) – - a headline index designed to measure the overall
health of the Indian manufacturing sector – - posted 56.7 in December,
marginally lower than November’s 58.4. The latest reading pointed to a marked
improvement of business conditions in the Indian manufacturing sector. While
the rate of growth slowed, it remained above the long-run series average.
December data signalled a marked rise in
incoming new business received by manufacturers in India. However, the latest
expansion in new order volumes was slightly weaker than in the previous survey
period. Growth of new business received from overseas markets also eased
marginally at the end of 2010, but remained strong and comfortably above the
Output increased substantially in December,
reflective of sustained growth in overall new orders. However, backlogs of work
increased for a ninth successive month. The rate at which outstanding business
accumulated was weaker than in the previous survey period, but remained fast in
the context of historical data. This suggested that pressures on operating
capacity persisted as workloads continued to rise. In some cases, shortages of
materials and labour compounded delays in production. Stocks of finished goods
increased only slightly in December.
Despite sustained expansions of new business
and output, employment in the Indian manufacturing sector was unchanged during
Purchasing activity at manufacturers in India
continued to rise markedly during December. However, in line with slower growth
of output, the increase in input buying eased. Nonetheless, delivery times
lengthened again. Panellists commented that short supply and excess demand for
materials had led to the deterioration in vendor performance. Stocks of
purchases rose for the twenty-second successive month in December as
manufacturers continued to increase pre-production inventories.
December data signalled a substantial rise in
input prices faced by manufacturers in India. Input costs have increased in each
month since April 2009, with the latest rate of inflation the strongest in eight
months and notably sharp in the context of historical data. Output prices also
rose markedly during the month, and at the fastest pace since May.
Commenting on the India Manufacturing PMI survey, Leif
Eskesen, Chief Economist for India & ASEAN at HSBC said: "Notwithstanding
the deceleration from last month, these numbers are testament to the strong
momentum in the manufacturing sector. Output continues to grow rapidly and order
books are still getting thicker. The strong momentum is pushing the sector to
the limit, with capacity constraints tightening. This is showing up in more
outstanding business, lengthening delivery times, and, of more concern, an
acceleration in both input and output prices. RBI's hawkish tones in their
latest statement are well founded and tightening will resume in early 2011."
The HSBC India Report on Manufacturing is based on data compiled
from monthly replies to questionnaires sent to purchasing executives in over 500
India will continue to grow at 6-8% over 2011, says Yuwa Hedrick-Wong, Global Economic Advisor at MasterCard Worldwide. He speaks to CNBC's Martin Soong about the risks associated with the economy:
Fraser Howie, managing director at CLSA Singapore, outlines the geopolitical risks to be aware of this year. He tells CNBC's Emily Chan that the impact of China's growing prowess on the balance of power in Asia is something to watch for: