INDIAN industry continues to grow after suffering a decline in 2009, data accrued by HSBC revealed yesterday.
In November industry growth rose to above the long-run average, accelerating for the second successive month.
The Purchasing Managers Index (PMI) jumped to 58.4 in November, up from 57.2 in October.
The volume of new orders and export business also grew, the former reaching its strongest rate for four months.
Yet employment in manufacturing was slightly down. Respondents to the survey cited workers leaving for higher wages in other areas.
And inflation remains a problem, with output price inflation now sustained for over a year.
“A spike in backlogs suggest tight capacity, which together with rising prices underscores the need for continued monetary policy tightening,” said Leif Eskesen, chief economist at HSBC.