India manufacturing growth jumps to 5-month high in Nov: HSBC PMI
The RBI is scheduled to announce its mid-quarter monetary policy review on December 18. Reserve Bank governor D Subbarao has resisted a widespread call for the growth-propping rate cuts for some time now, citing the elevated inflation.
"The PMI numbers suggest that the RBI should continue to abstain from easing," Eskesen said.
Inflation as measured by all indices has remained elevated and Wholesale Price Index-based inflation has remained above the Reserve Bank's comfort zone of 5 to 5.5 per cent for nearly three years now.
Meanwhile, job creation was recorded in the Indian manufacturing sector in November for the ninth successive month, though the pace of expansion was only slight, HSBC said.
India factory index accelerates to 5-month high in November
(Reuters) India's manufacturing sector beat the expectations of economists to grow at its fastest pace in five months in November, boosted by strong export orders and a surge in output, a business survey showed on Monday.
The HSBC manufacturing Purchasing Managers' Index (PMI) , which gauges the business activity of India's factories but not its utilities, rose to 53.7 in November from 52.9 in October.
Readings above 50 denote growth, and economists had forecast a rise to 53.1 in November.
Although India's factory activity has now expanded for over three-and-a-half years, it is a long way from the robust growth seen before the onset of the financial crisis in 2007.
Asia's third-largest economy
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