India’s export-import growth better vs other Asian countries
"In contrast to all other Asian countries, India’s export and import growth actually managed to surprise on the upside.
By ET Bureau |
MUMBAI: "In contrast to all other Asian countries, India���s export and import growth actually managed to surprise on the upside. While exports dropped 1.1% on the year (the third consecutive contraction) this was a lot better than the double-digit falls of October and November," said HSBC's senior Asian economist Robert Prior-Wandersforde.
Prior-Wandersforde, in a note to clients, asked investors not to read too much into the data as the more encouraging picture was supported by India's manufacturing PMI (Purchasing Managers' Index) for January which showed its first improvement since August last year.
"Import values rose 8.8%, on the back of a 32% surge in non-oil imports, suggesting that there is still some life in India's domestic economy," Wandersforde said.
India's exports declined for a third straight month in December as the global recession reduced overseas orders, curbing growth in Asia's third-largest economy. Exports dropped 1.1% to $12.7 billion from a year earlier, the government said on Monday. Imports in December rose 8.8% to $20.3 billion, widening the trade deficit to $7.6 billion.
FALL IN TOTAL WORK
According to a note put out by ABN Amro, the decline in incoming new business to Indian manufacturers, from both domestic and foreign clients, eased sharply during January. Even so, data still signalled a marked fall in total new work over the month. Respondents stated that customers were unwilling or unable to commit to new contracts due to global economic and financial difficulties, the report stated.
"Indian manufacturers reported leaner order books in January. Uncertainty and falling demand, resulting from global financial and economic problems, were blamed for the lower inflow of new work. Although the seasonally adjusted new export orders index rose in January, almost as sharply as it fell in December, the latest figure still indicated a marked fall in new work from abroad," the ABN Amro report said.
UNEMPLOYMENT
According to ABN Amro, lower workloads in January led companies in the Indian manufacturing industry to seek cost savings. "Employment suffered as a result, and job-shedding was recorded in the sector for the second month running. However, the rate of reduction in staffing numbers over the latest survey month was marginally slower than during December," the ABN Amro report added.
Prior-Wandersforde, in a note to clients, asked investors not to read too much into the data as the more encouraging picture was supported by India's manufacturing PMI (Purchasing Managers' Index) for January which showed its first improvement since August last year.
"Import values rose 8.8%, on the back of a 32% surge in non-oil imports, suggesting that there is still some life in India's domestic economy," Wandersforde said.
India's exports declined for a third straight month in December as the global recession reduced overseas orders, curbing growth in Asia's third-largest economy. Exports dropped 1.1% to $12.7 billion from a year earlier, the government said on Monday. Imports in December rose 8.8% to $20.3 billion, widening the trade deficit to $7.6 billion.
FALL IN TOTAL WORK
According to a note put out by ABN Amro, the decline in incoming new business to Indian manufacturers, from both domestic and foreign clients, eased sharply during January. Even so, data still signalled a marked fall in total new work over the month. Respondents stated that customers were unwilling or unable to commit to new contracts due to global economic and financial difficulties, the report stated.
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"Indian manufacturers reported leaner order books in January. Uncertainty and falling demand, resulting from global financial and economic problems, were blamed for the lower inflow of new work. Although the seasonally adjusted new export orders index rose in January, almost as sharply as it fell in December, the latest figure still indicated a marked fall in new work from abroad," the ABN Amro report said.
UNEMPLOYMENT
According to ABN Amro, lower workloads in January led companies in the Indian manufacturing industry to seek cost savings. "Employment suffered as a result, and job-shedding was recorded in the sector for the second month running. However, the rate of reduction in staffing numbers over the latest survey month was marginally slower than during December," the ABN Amro report added.
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