Business, Finance & Economics

India factory output rises, reversing trend


Reversing several months of negative signals, India's factory output surged to a six-month high in December, while other Asian industrial powers stagnated.


Sean Gallup

Could India be looking at the end of bad news? 

Maybe not.  But investors got a glimmer of hope in December, as India's factory output surged to a six-month high, even as other Asian industrial powers stagnated, according to the Times of India.

China narrowly avoided a contraction and South Korea's output shrunk by the biggest margin in three years.  In contrast, the HSBC Market India Manufacturing PMI jumped to 54.2 from 51.0 in November, its biggest monthly rise since April 2009, the paper said. The index has stayed in growth territory for 33 months now. The PMI came closest to suggesting a contraction in September when it dipped to 50.4.

Reading the tea leaves, analysts have suggested that the central bank may also look to cut interest rates by June.