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India’s HSBC Markit Purchasing Managers’ Index (PMI) for Manufacturing for Jan 2014 was at 51.4, the highest since March of last year. A PMI reading above 50 indicates expansion, and below 50 is contraction.

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Interestingly, although it looks like inflation is down in vegetables, it’s not so in manufacturing:

Average input costs rose in January, 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. Although the strongest in three months, the latest rise in output charges was moderate and much weaker than seen for input costs.

As you can see from the graph, this isn’t such a huge thing but it’s coming off from negative territory. Are these the green shoots we’ve been waiting for? The taper isn’t making us look like it.

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