Millennium Post

‘India among those showing stabilisation signs’

The world’s large economies such as the US, India, China and the Eurozone are showing signs of ‘tentative stabilisation’ and an uptick in new orders, an HSBC survey has said.

The recent crop of PMIs provided a somewhat better tone, HSBC said in a research note adding that the global PMI, has showed a uptick in new orders.

Interestingly, in the Eurozone, too, the manufacturing PMI recovered a little, although it still points to an ongoing fall in output.

The report, however, noted that some caution should be adopted while reading too much into the uptick of the PMIs in bigger economies as a sharp revival in the global industrial activity in the next two to three months is not likely.

‘Expectations of a sharp rebound in global industrial activity into year-end seem thus premature. A more convincing upturn will likely only occur next year,’ HSBC said.

Though there has been signs of ‘tentative stabilisation’ in the world’s larger economies, some Asian economies like Korea, Taiwan, and Singapore witnessed decline in new orders ‘warranting caution about 4Q growth,’ HSBC said.

In Asia, the larger economies of Japan, China, India, and Indonesia – or ‘Big Asia’ – registered a similar up-tick in PMI readings.
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