The HSBC Purchasing Manager Index (PMI) for the Indian manufacturing sector increased to 51.7 in the month of January 2014 compared to 50.7 registered in December 2013. The PMI for the month of January 2014 was the highest since March 2013. The HSBC Purchasing Managers Index (PMI) 2014 was released on 3 February 2014.
The HSBC India Purchasing Managers’ Index (PMI) is a seasonally adjusted index designed to measure the performance of the manufacturing economy.
• Indian manufacturers raised their production levels for the third successive month. The rate of output growth was solid and the strongest since February 2013.
• January 2014 saw new orders expand at the quickest rate in ten months, with survey participants reporting stronger demand from both domestic and overseas clients.
• Employment rose for the fourth month running in January 2014, with all three broad areas of the manufacturing economy posting job creation.
• New business from abroad grew at a solid pace that was the fastest since June 2013.
• Consumer goods continued to outperform the remaining two monitored categories, viz., intermediate goods and capital goods, while operating conditions deteriorated at capital goods producers.
• Growth rates for output and new orders in the consumer goods sub-category surpassed those seen at intermediate goods companies.
• Supplier performance improved in the latest month for the first time since September 2013. Anecdotal evidence suggested that shorter delivery times reflected a greater availability of raw materials at vendors.
• Average input costs rose in January 2014, with manufacturers reporting higher prices for a range of raw materials, including metals, chemicals and energy. The rate of cost inflation remained robust. Consequently, companies raised their tariffs again.
About HSBC PMI
The HSBC India Purchasing Managers’ Index (PMI) is a composite indicator designed to provide an overall view of activity in the manufacturing sector and acts as a leading indicator for the whole economy.
The indicator is derived from individual diffusion indices which measure changes in output, new orders, employment, suppliers’ delivery times and stocks of goods purchased.
A reading of the PMI below 50.0 indicates that the manufacturing economy is contracting. Above 50.0, it is generally expanding. A reading of 50.0 signals no change. The greater the divergence from 50.0, the greater the rate of change signaled by the index.
Purchasing Managers’ Index are either registered trade-marks of Markit Economics Limited or licensed to Markit Economics Limited. HSBC use the above marks under licence. Markit is a registered trade mark of Markit Group Limited.