India’s manufacturing PMI in October
India’s manufacturing PMI (purchasing managers’ index) stood at 50.3 in October as compared to 51.2 in September. The reading was below the market expectation of 51.5.
It was the weakest reading since July 2017. In July 2017, India’s manufacturing PMI showed a contraction in manufacturing activity. The Indian government implemented the GST (goods and service tax) on July 1, 2017. Investors were nervous about the new tax policy after the implementation of the GST, which impacted consumer demand that month.
However, the weaker manufacturing activity in October as compared to September was mainly due to the following:
- Production output showed weaker improvement in that month. New order growth remained stagnant in that month.
- Export orders fell the most since September 2013.
- Business sentiment also fell during the month.
Performance of major ETFs in October
The iShares MSCI India (INDA), which tracks the performance of India, rose nearly 7.2% in October 2017. The SPDR S&P 500 ETF (SPY), which tracks the performance of the S&P 500 Index (IWM) (QQQ) (SPX-INDEX), rose 2.4% in October 2017.
In the next part of this series, we’ll analyze the performance of India’s services PMI in October 2017.