Bhai Zakir
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India's June factory activity ticks up, hiring expands: HSBC PMI
BANGALORE: Indian factories in June stepped up production and hired workers at the fastest rate in more than two years,
but sagging demand abroad took a toll on growth in new export orders, a survey showed on Monday.
The HSBC manufacturing Purchasing Managers' Index (PMI) rose to 55.0 in June, a four-month high, from 54.8 in May. It has kept above the 50 mark that divides growth and contraction for more than three years.
A slump in factory activity in China and Japan deepened in June.
"Activity in the manufacturing sector kept up the pace in June with output and employment expanding at a faster pace," said Leif Eskesen, economist at HSBC.
The employment sub-index was at 52.4 in June, the highest level since May 2010.
While the PMI suggested domestic demand was holding up, signs from abroad looked more ominous.
New export orders grew at their slowest pace since November 2011, with demand weakening in top trading partners Europe and the United States.
"New order growth decelerated slightly led by export orders while stock levels rose, suggesting a slight moderation in output growth going ahead," HSBC's Eskesen said.
Meagre first quarter growth and low consumer confidence in the United States, along with equally dismal sentiment data coming out of the euro zone in the past week, do not bode well for India's factories in the months ahead.
Although euro zone leaders agreed to take emergency action to bring down Italy's and Spain's spiralling borrowing costs at a summit on Friday, it remains to be seen if investor relief can be sustained.
India's benchmark stock index, the BSE Sensex jumped to a two-month high on Friday, reflecting a rally across Asian shares after the European Union summit.
India's June factory activity ticks up, hiring expands: HSBC PMI - The Economic Times
BANGALORE: Indian factories in June stepped up production and hired workers at the fastest rate in more than two years,
but sagging demand abroad took a toll on growth in new export orders, a survey showed on Monday.The HSBC manufacturing Purchasing Managers' Index (PMI) rose to 55.0 in June, a four-month high, from 54.8 in May. It has kept above the 50 mark that divides growth and contraction for more than three years.
A slump in factory activity in China and Japan deepened in June.
"Activity in the manufacturing sector kept up the pace in June with output and employment expanding at a faster pace," said Leif Eskesen, economist at HSBC.
The employment sub-index was at 52.4 in June, the highest level since May 2010.
While the PMI suggested domestic demand was holding up, signs from abroad looked more ominous.
New export orders grew at their slowest pace since November 2011, with demand weakening in top trading partners Europe and the United States.
"New order growth decelerated slightly led by export orders while stock levels rose, suggesting a slight moderation in output growth going ahead," HSBC's Eskesen said.
Meagre first quarter growth and low consumer confidence in the United States, along with equally dismal sentiment data coming out of the euro zone in the past week, do not bode well for India's factories in the months ahead.
Although euro zone leaders agreed to take emergency action to bring down Italy's and Spain's spiralling borrowing costs at a summit on Friday, it remains to be seen if investor relief can be sustained.
India's benchmark stock index, the BSE Sensex jumped to a two-month high on Friday, reflecting a rally across Asian shares after the European Union summit.
India's June factory activity ticks up, hiring expands: HSBC PMI - The Economic Times
