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Charts & Analysis

India PMI Falls to 54.8, Growth Pace Declines


The HSBC Markit Purchasing Managers Index (PMI) comes in at 54.8, with the service part of the index slowing down while the manufacturing pace increased.


A number above 50 is still expansion but at a slower pace than earlier. Overall, the problem is that input price inflation continues to hurt.

I believe we should see slowing service output impact wages, and then, consumption. Coupled with inflation this is leading to stagflation in the economy. A rise in the stock markets might only be unbridled optimism, since these are macro headwinds which impact the economy in the longer term.


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