India PMI


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.

FocusEconomics Consensus Forecast panelists see fixed investment rising 4.3% in FY 2014/2015, which is unchanged from last month’s estimate. For FY 2015/2016, the panel expects fixed investment to increase 6.6%, which is also unchanged.

Author: Angela Bouzanis, Senior Economist

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India PMI Chart

India PMI January 2015

Note: HSBC India Purchasing Managers’ Index (PMI). A reading above 50 indicates an expansion in business activity while a value below 50 points to a contraction.
Source: HSBC and Markit.

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