India’s manufacturing output, as measured by HSBC’s Purchasing Manager’s Index (PMI), expanded in January but the growth was slowest since October.
The country’s Manufacturing PMI stood at 53.2 in January. In December, the figure was 54.7. A figure above 50 indicates expansion.
The HSBC India Manufacturing PMI is based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 500 manufacturing companies.
“While solid, the rise in production was the slowest recorded in three months amid evidence from the survey panel that ongoing issues with the supply of power had restricted growth,” HSBC said.
In January, pre-production inventories rose for the ninth consecutive month with manufacturers. In contrast, post-production inventories depleted as power shortages hampered production and inventories were used to satisfy demand requirements wherever possible, HSBC said.
The manufacturing PMI has shown an expansion continuously since April 2009.
However, the Government’s Index for Industrial Production (IIP) figure shows that factory output grew by a mere one per cent between April to November, 2012.
Just three of those eight months reported an expansion in factory output.