There's more mixed news for the economy from the high-frequency indicators.
Core sector growth accelerated in September to a four-month high and the country's biggest car manufacturer Maruti Suzuki reported strong numbers in October. The good news was tempered by a slowdown in manufacturing to a 22-month low in October.The Nikkei Manufacturing Purchasing Managers' Index declined to 50.7 in October from 51.2 in September.
The Index of Eight Core Industries expanded 3.2% in September compared with growth of 2.6% in the previous month as outsized gains in fertilisers masked a contraction in three sectors that are part of this measure. Growth in the April-to-September period was 2.3%, which was less than 5.1% in the corresponding period of the previous year. Maruti said it sold over 30,000 more cars in October this year compared with the same month last year, an increase of 29.1%. The data typify the mixed picture of economic recovery presented by the indicators, with a weak PMI and corporate investment countering upbeat indirect tax collections and rising industrial growth.
India's industrial output expanded at an almost three-year high rate of 6.4% in August and the core sector numbers suggest it could pick up. The core sector index has a 38% weight in the Index of Industrial Production.
Most independent economy watchers have lowered their estimates of India's growth in the current financial year to about 7.5% from almost 8% because of the mixed evidence and the weakness in the rural economy following successive weak monsoons.
Last week, India Ratings cut its growth estimate for the year to 7.5% from 7.7% forecast earlier.
The decline in PMI was largely because of weaker output following a slower rise in new orders.Rates of expansion in both production and order books were the weakest in their current 24-month sequences of growth.
Core sector growth was driven by an 18.1% spike in fertiliser production and a 10.8% rise in electricity generation. The key cement and steel sectors shrank 1.5% and 2.5%, respectively, taking some of the sheen away from the headline numbers. Coal production recovered marginally to post a 1.9% growth while natural gas production was up 0.9%. Crude production was flat while refining showed a marginal 0.5% growth.
Core sector growth accelerated in September to a four-month high and the country's biggest car manufacturer Maruti Suzuki reported strong numbers in October. The good news was tempered by a slowdown in manufacturing to a 22-month low in October.The Nikkei Manufacturing Purchasing Managers' Index declined to 50.7 in October from 51.2 in September.
The Index of Eight Core Industries expanded 3.2% in September compared with growth of 2.6% in the previous month as outsized gains in fertilisers masked a contraction in three sectors that are part of this measure. Growth in the April-to-September period was 2.3%, which was less than 5.1% in the corresponding period of the previous year. Maruti said it sold over 30,000 more cars in October this year compared with the same month last year, an increase of 29.1%. The data typify the mixed picture of economic recovery presented by the indicators, with a weak PMI and corporate investment countering upbeat indirect tax collections and rising industrial growth.
India's industrial output expanded at an almost three-year high rate of 6.4% in August and the core sector numbers suggest it could pick up. The core sector index has a 38% weight in the Index of Industrial Production.
Most independent economy watchers have lowered their estimates of India's growth in the current financial year to about 7.5% from almost 8% because of the mixed evidence and the weakness in the rural economy following successive weak monsoons.
Last week, India Ratings cut its growth estimate for the year to 7.5% from 7.7% forecast earlier.
The decline in PMI was largely because of weaker output following a slower rise in new orders.Rates of expansion in both production and order books were the weakest in their current 24-month sequences of growth.
Core sector growth was driven by an 18.1% spike in fertiliser production and a 10.8% rise in electricity generation. The key cement and steel sectors shrank 1.5% and 2.5%, respectively, taking some of the sheen away from the headline numbers. Coal production recovered marginally to post a 1.9% growth while natural gas production was up 0.9%. Crude production was flat while refining showed a marginal 0.5% growth.
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