India October PMI Up to 57.2

The HSBC Markit October India Manufacturing Purchasing Manager’s Index (PMI) was released today and it bumped back up to 57.2 from the 55 levels last month.

(Above 50 indicates expansion, below 50 is contraction)

Interestingly:

October data signalled a marked rise in input prices faced by manufacturers in India. Moreover, the rate of input cost inflation was stronger than that recorded in September. The increase in input costs drove a further rise in output prices. However, this was relatively small compared to that seen for input prices, suggesting that manufacturers were still finding it difficult to pass on increased costs to customers.

This probably means RBI will continue the rate increase process tomorrow.

Earlier posts on PMI:

• India PMI drops to 56.3 (Sep 2010)

• Munger’s Chutzpah, Overheating India, PMI

• Inflation at 0.26%, IIP at -1.2%, PMI still underwater