India: Manufacturing PMI moderates while services improves
February 4, 2015
The HSBC manufacturing Purchasing Managers’ Index (PMI) fell to 52.9 in January from 54.5 in December. December’s result had marked the highest point in two years. The PMI is now closer to the 50-threshold that separates expansion from contraction in business activity in the manufacturing sector.
According to HSBC, the result was driven by slower, but still healthy, growth of output and new orders. In addition, employment rose in January but only slightly. HSBC pointed out that, “[m]anufacting activity continued to signal improvement in January, though the rate of growth slipped to a three-month low. The slip can partly be attributed to consolidation after two impressive upticks.”
Meanwhile, the services PMI rose to 52.4 in January from December’s 51.1, indicating that business activity in services continues to expand. According to HSBC, the increase in January stemmed from a pick-up of new business during the month.