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Charts & Analysis

April 2013 Composite PMI Lowest Since Oct 2011

The HSBC Markit Purchasing Manager’s Index (PMI) was in for April 2013 today at 50.5, the lowest since October 2011. This composite index is an average of the Manufacturing and Services Indexes. The Manufacturing Index was at 51, released earlier this month and the lowest since Nov 2011.

India PMI for April 2013

What’s above 50 is still expanding, but a number closer to 50 means the expansion is at a lower rate.

What’s also not said but to note is that if the average is 50.5, and the manufacturing index is at 51, then the other component – the services index – is at 50. This means the services index is close to moving into contraction zone.

All indications seem to be of a slowdown, but even in the PMI releases there is a note of caution on prices – inflation’s cooling but wage growth remains high.

  • cdmoorthy says:

    Dear Deepak,
    Do you remember, at the time of NMDC IPO somewhere during 2010 (if i am not wrong) – I requested you to give your opinion on that.
    Exactly as viewed by you, market found its price was very high and it tanked. Rest every one knows.
    Now after a gap of 3 years – I look at this counter, as there is a massive e-auction happening. Some info suggests that it might start rallying with overall market – as positive sentiment triggered every where incluing NMDC. Optimistic estimation says it will hit once again 160 -180-200 sooner.
    I seek your opinion as your views are unbiased usually.
    Would like to have in your blog.
    Thanks in advance and Best regards

  • Vamsy says:

    Nothing will stop the bull market as this month is a busy POMO schedule for the Fed.