Manufacturing growth in India seen at a 9-month high in August 2007
The Indian manufacturing operations recorded highest growth since November. Dutch bank sponsored research compiled by NTC, UK tracks changes in manufacturing business conditions across 500 companies each month on output, new orders, employment and prices.
A reading above 50.0 indicates growth & readings below 50.0 suggests contraction.
The PMI hit a peak of 59.3 in October 2006 but has been declining since then as the Reserve Bank tightened its monetary policy to cool prices in Asia's third-largest economy, which grew at an annual 9.3 per cent in the April-June quarter.
The RBI also raised its key short-term lending rate five times since June 2006 and increased banks' CRR requirements by 200 basis points since December.
According to the RBI's annual report released recently, inflationary pressures could continue due to high global commodity prices and capital flows, even though inflation has eased to just below 4% annually in August from a two-year high of 6.69 % in January.
The new orders index rose sharply to 64.8 in August from 55.7 in July. The new export orders index climbed to 54.9 in August from 51.3 in July. The output index rose to 60.7 in August, a nine-month high.
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