India’s manufacturing PMI in December
India’s manufacturing PMI (purchasing managers’ index) stood at 54.7 in December compared to 52.6 in November 2017. The reading beat the market’s expectation of 51.0.
The stronger manufacturing activity in December compared to November was mostly due to the following factors:
- Production output and volume rose at a stronger pace in December. It hit a five-year high in that month.
- New orders and export orders improved at a faster pace since October 2016.
- The employment growth rate rose at a faster pace since August 2012.
Performance of major ETFs in December
December’s manufacturing PMI report showed its greatest improvement since December 2012. The business confidence index of India (INDA) also strengthened and reached its highest level in the past three months. The improvement in the economic situation and strong reforms in the economy are supporting business conditions in India.
The equity market also showed an all-time high during this timeframe. The iShares MSCI India ETF (INDA) rose nearly 4.4% in December 2017. The SPDR S&P 500 ETF (SPY), which tracks the performance of the S&P 500 Index (IWM)(QQQ)(SPX-INDEX), rose 1.2% during the month.
In the next part of this series, we’ll analyze the performance of India’s services PMI in December 2017.