India's HSBC PMI @ 17 month high in July

Manufacturing activity accelerated at its fastest pace in 17 months in July on the back of new orders from overseas and domestic entities, bringing more cheer for the new government which is battling to revive growth and investment.The HSBC Manufacturing Purchasing Managers' Index (PMI) compiled by Markit rose to 53 in July, up from 51.5 in June, signalling a solid improvement in business demand. However, inflationary pressures continued to emerge, particularly on the supply side which may prompt the RBI India to hold interest rates.
The latest data on the manufacturing sector follows the robust performance by the eight core sector industries which grew 7.3% in June from a year earlier triggering expectations of a revival in the industrial sector. The Narendra Modi government has vowed to revive the manufacturing sector and the overall economy to create jobs.While it is too early to predict a definitive turnaround the strong numbers in some sectors particularly on manufacturing does keep hopes alive for a broad based revival in the months ahead.