India manufacturing sector output hits 2-yr high in Dec: HSBC
January 2, 2015, 7:33 am

A worker pastes stickers on bicycle parts at a factory at Ludhina in Indian state of Punjab, Feb. 1, 2014 [Xinhua]

The sector ended 2014 on a high note on strong orders flows, including from abroad, according to an HSBC survey released on Friday.

The headline HSBC India Purchasing Managers’ Index (PMI) — a composite gauge designed to give a single-figure snapshot of manufacturing business conditions — stood at 54.5 in December, up from 53.3 in November.

Indian Prime Minister Narendra Modi is pushing the “Make in India” campaign, designed to attract foreign investment by highlighting ongoing changes.

“We have to increase manufacturing and ensure that the benefits reach the youth of our nation,” Modi tweeted after the initiative’s September 25 introduction.

The HSBC survey said on Friday that manufacturing sector output, improved for the 14th month in a row and reached a two-year peak in December.

A figure above 50 indicates the sector is expanding, while a figure below 50 means contraction.

“Manufacturing activity momentum accelerated to a two-year high in December, led by a healthy increase in new orders from both at home and from abroad,” HSBC Chief India Economist Pranjul Bhandari said.

The accelerated growth of the manufacturing sector was reflected by faster expansions in output, new business and foreign orders.

Manufacturing companies registered a further rise in new export business in December and new work from abroad expanded at the quickest pace since April 2011.

Meanwhile, contrasting with continued growth of production and incoming new work, staffing levels in India’s manufacturing economy declined in December.

 TBP and Agencies