Nov manufacturing shrugs off note ban & GST worries, sees fastest pace of growth in 13 months
, ET Bureau|
Updated: Dec 01, 2017, 11.44 AM IST
NEW DELHI: Manufacturing activity in India in November expanded at its fastest pace in thirteen months, a private survey showed on Friday.
The Nikkei India Manufacturing Purchasing Manager’s Index (PMI) rose to 52.6 in November from 50.3 in October as growth in consumer and intermediate goods offset a marginal deterioration in investment goods category.
A reading above 50 on the index indicates expansion.
"India’s manufacturing economy advanced on its path to recovery as disruptions from the recent tax reform (GST) continues to diminish," said Aashna Dodhia, economist at IHS Markit and author of the report.
The boost came a day after official data showed Indian economy shrugging off the disruption caused by GST and any lingering after-effects of demonetisation to grow 6.3% in the July-September led by a revival in manufacturing.
On the job front, the survey showed greater production requirements led to the fastest rate of employment creation since September 2012.
Dodhia said that underlying data indicated that the Reserve Bank of India is less likely to adopt an accommodative stance as input cost inflation intensified to the fastest since April. The RBI governor led monetary policy committee will meet December 5-6 to review the monetary policy where economists don't expect it to change the existing rates.
The Nikkei India Manufacturing Purchasing Manager’s Index (PMI) rose to 52.6 in November from 50.3 in October as growth in consumer and intermediate goods offset a marginal deterioration in investment goods category.
A reading above 50 on the index indicates expansion.
"India’s manufacturing economy advanced on its path to recovery as disruptions from the recent tax reform (GST) continues to diminish," said Aashna Dodhia, economist at IHS Markit and author of the report.
The boost came a day after official data showed Indian economy shrugging off the disruption caused by GST and any lingering after-effects of demonetisation to grow 6.3% in the July-September led by a revival in manufacturing.
On the job front, the survey showed greater production requirements led to the fastest rate of employment creation since September 2012.
Dodhia said that underlying data indicated that the Reserve Bank of India is less likely to adopt an accommodative stance as input cost inflation intensified to the fastest since April. The RBI governor led monetary policy committee will meet December 5-6 to review the monetary policy where economists don't expect it to change the existing rates.
