India up, China down

Discussion in 'Economy & Infrastructure' started by Srinivas_K, Feb 3, 2014.

  1. Srinivas_K

    Srinivas_K Senior Member Senior Member

    Jun 17, 2009
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    India up, China down

    While India’s manufacturing rose at the fastest pace in a year, Chinese manufacturing cooled further in January


    India and China are showing a divergence in manufacturing activity. India’s HSBC manufacturing Purchasing Manager’s Index (PMI) rose at the fastest pace in a year to 51.4 in January on the back of surge in domestic and export orders. On the other hand, Chinese manufacturing activity cooled further to 49.5 in January, giving further evidence of a widespread slowdown. A reading below the 50 mark indicates contraction.
    There was a surge in activity in the consumer goods segment in India but most economists say this does not mean the economy will turn around because progress on execution of projects is slow, corporate leverage remains high and inflationary concerns persist. In China, the operating conditions have deteriorated further due to tight liquidity conditions and any export led recovery is yet to boost production. Clearly, equities are more worried about a hard landing in China, and the emerging markets sell-off continued on Monday following poor data from China.

    India up, China down - Livemint
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