December PMI at 5-month high; other data mixed:Citigroup
05 Jan 2012
After months of moderation, the December PMI rose by 3 points to 54.2. The unexpected year-end rebound in PMI mirrors trends seen in China and the US. The rise in output was led by both domestic and external factors. Current indicators as reflected in total output rose 5.3 points to 55.8 while the forward looking indicators i.e new orders rose 5.1 points to 57.9 and new export orders rose 3.6 to 54.1.
"While this is clearly positive, given the deceleration seen in the autos and materials space, its too early to call a trend reversal in growth. Nonetheless, this bodes well for growth in the coming months," said Citigroup in its PMI commentary.
Prices: Output prices rise but input prices moderate
Unlike the past, there was a divergence in prices. Input prices moderated marginally by 0.42 points to 62.7 while output prices rose further by 0.8 points to 56.2.
While the base effect is impacting the primary product numbers (latest weekly reading at 0.1 per cent), which in turn could result in a sub-8 per cent headline WPI print, PMI data indicates that price pressures continue unabated and pricing power remains unchanged.
November infrastructure index rises 6.8 per cent YoY
Following the dismal 0.3 per cent growth seen last month, the recently-released index for eight core infrastructure industries rose 6.8 per cent YoY in November.
On a cumulative basis, growth during Apr-Nov FY12 moderated to 4.6 per cent vs. 5.6 per cent during the same period last year.