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Manufacturing weakens in China, India: HSBC
May 4, 2015, 5:44 am

Despite the slowdown, China and India still remain some of the fastest growing economies in the world [Xinhua]

Despite the slowdown, China and India still remain some of the fastest growing economies in the world [Xinhua]

Both Chinese and Indian manufacturing growth eased in April as domestic demand softened, showed a business survey on Monday.

China’s final Purchasing Managers’ Index (PMI) from HSBC Holdings Plc and Markit Economics was at 48.9 while India’s PMI fell to 51.3 in April from March’s 52.1.

The reading at 50 separates growth from contraction.

The HSBC index monitoring new business in India fell to 51.9 in April from 53.2.

A slowing manufacturing industry in both China and India reinforces expectations that the two Central Banks, the Reserve Bank of India and the People’s Bank of China, will again cut interest rates soon.

Chinese policy makers cut interest rates and reduced banks’ reserve requirement ratios twice in the past six months.

The Indian Central Bank has also already cut rates twice this year.

As Beijing attempts to find the right policy mix to shore up economic activity, a policy meet of the Communist Party on Thursday endorsed targeted control measures.

“China will step up targeted control measures, and timely pre-tune and fine-tune policies to combat the downward pressure,” the Politburo statement noted.

The Politburo, a decision-making body of the ruling Chinese Communist Party, met under President Xi Jinping, on Thursday in Beijing.

Despite the slowdown, China and India still remain some of the fastest growing economies in the world.

China’s gross domestic product (GDP) grew an annual 7.0 per cent in the first quarter of 2015, slowing from 7.3 per cent in the fourth quarter of 2014.

Indian statistics data to be released at the end of this month is expected to show the economy grew 7.4 per cent during the January-March quarter.

 

 

TBP and Agencies

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