What’s Affecting India’s Manufacturing PMI?
India’s manufacturing PMI in September
India’s manufacturing PMI (Purchasing Managers’ Index) report for September 2017 indicates no change in manufacturing activity compared to August 2017. The index stood at 51.2 in September, the same as August, and below the market expectation of 51.9.
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Let’s look at some of the key factors in India’s September manufacturing PMI:
- Production volume showed some marginal improvement.
- New order growth and production output remained weaker.
- Employment in the manufacturing sector improved significantly.
- The business confidence index strengthened.
After the implementation of GST (Goods and Services Tax) in July 2017, there’s still a lot of confusion among consumers and businesses about the Indian economy. Rising uncertainty about the tax policy seems to be affecting the overall performance of the manufacturing sector. Export orders fell for the first time in the last four months.
Performance of major ETFs in September
The iShares MSCI India (INDA), which tracks the performance of India, fell 3.6% in September 2017. The SPDR S&P 500 ETF (SPY), which tracks the performance of the S&P 500 Index (IWM) (QQQ), rose 2.0% in September 2017.
In the next part of this series, we’ll look at the performance of India’s services PMI in September 2017.