July 2014 Manufacturing PMI at 17 Month High at 53

Comments Off Written on August 1st, 2014 by
Categories: PMI

India’s Manufacturing Purchasing Managers’ Index (PMI) for July 2014 is at the highest since Feb 2013, at 53.0, higher than the 51.5 in June.

 

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Remember, what’s more than 50 indicates expansion, and less than 50 is contraction.

But this comes with a caveat.

A quick word of caution, however. The speed of the recovery has also lifted price pressures, with input prices rising steeply. This means that the RBI may not cheer as loudly as the rest of us."

You might find that with veggie prices going up too, we might see RBI wait for another two months before it decides to cut rates.

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The man behind Capital Mind. Deepak is a co-founder at MarketVision, a financial knowledge company. Deepak also provides data research and consulting services, and now lives in Bangalore. Connect with him at deepakshenoy@capitalmind.in.