Quick manufacturing growth can cause a skid (oil spill?)

The HSBC MarkIT PMI for China and UK has already ticked to 51 and 50.6 already while US and India are still faster and higher at 54-55. the official PMI for India was above 55 as well, which is much better than any other global economy. However the concern it raises is the same, that our trade deficit at $15 billion caused by an import bill of $40.9 bln is stilla tougher story than the growth

As the pitch has slowed down considerably, India is paying dearly for Industrial growth. While manufacturing stays around 6%, the uptick in infrastructure has maintained hopes for India and the MarkIT PMI on tuesday might well signall a bullish Economy. But as Auto sales falter, the Oil import bill continues to drag India down and even create a winbdow for fiscal and monetary rebalancing much more than the hawkish anti inflation stance adopted by RBI and MoF

A commonplace yet very effective analysis from the India WSJ team threads it together thus: 

 

One thought on “Quick manufacturing growth can cause a skid (oil spill?)

Comments are closed.

Up ↑

%d bloggers like this: