The India PMI lead impact

HSBC PMI comes in at above 54

Along with the 52.7 in manufacturing PMI, the Services PMI came in at 54.3 and really its not a don dip given india’s growth bracket that June data was at 54.3 and I think journalists, both local and international,  should esp be careful about using the same idiom as US markets for such variations

The Composite PMI is thus also 54.4 and that means India leads the Global production drawdowns though not insulated from those vagaries and will be looking to capitalise on that lead as a consistent benchmark. india’s lowest Quarterly GDP increase 5.3% in Q1 ( over Q1 FY12) was based on robust consumption growth and disposable incomes in  India have also risen in the latter period. As of now the only worries arise when Commodities gain at leat 10% from their bottoms and get into a wild upsing trade post LTRO/QE3/Stimulus and india bites the fruit of negative / Vicious cycles of economic delineation

Monsoons are going to be deficient by just 10% but return to high growth is unlikely for India inc though profit growth has continued in this quarter for well managed companies

 

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