MUMBAI (AFP) – Indian factory output rose at its fastest rate in nearly two years in November, with consumer goods leading the way, a key HSBC survey showed Monday.
The British banking giant said its purchasing managers index (PMI) rose to 53.3 points from 51.6 in the previous month, the highest figure recorded since February 2013.
In the survey, which is seen as a harbinger of industrial expansion and economic health, a reading of more than 50 points suggests expansion while anything below indicates contraction.
“Manufacturing operating conditions in India improved for the thirteenth month in a row in November, supported by stronger growth of output and new work intakes,” said HSBC in a report.
However, the bank cautioned that inflationary pressures had intensified in November after three months of easing.
The latest data comes a day before India’s central bank meets for its regular monetary policy review.
The Reserve Bank of India (RBI) is under pressure to cut its benchmark lending rate, held at a steep eight percent since last January, to help revive the country’s flagging economy.
But any sign of a rebound in inflation will make that more difficult.