Friday, December 02, 2022

Every metric rising.

 "The Manufacturing Purchasing Managers' Index, compiled by S&P Global, rose to 55.7 last month compared to 55.3 in October, marking the seventeenth successive month of expansion in manufacturing production across India." Reuters. "Robust demand, particularly for consumer and intermediate goods, and marketing pushed the new orders sub-index to a three-month high. International demand rose for an eighth consecutive month and at a similar pace to October." Private consumption expenditure forms 55-60% of GDP, wrote Vivek Kaul. "A close to 10% growth of private consumption, or the money you and I spend on buying things, is what primarily drove the GDP growth." Investment grew by 10.4%. While India's PMI shows strong growth, "The Association of South East Asian Nations  (ASEAN) manufacturing PMI slowed further to 50.7 in November, from 51.6 in October. China's Caixin manufacturing PMI was in contraction zone for the fourth month in October," wrote Harsha Jethmalani. More encouragingly, "The input cost pressure for Indian manufacturers was the weakest in 28 months and the reading is well below its long-run average." This should bring down consumer prices. India has recovered from the Covid-19 pandemic and the war in Ukraine in much better shape than other major economies, wrote Soumya Kanti Ghosh. "We found that if the household budget was Rs 100 in September 2021 across all countries, it has now increased by Rs 12 in both US and India, but it has increased by Rs 20 in Germany and Rs 23 in UK." As a result of inflation. "In terms of increase in energy prices, what cost Rs 100 is now up by Rs 12 in US, a staggering Rs 93 in UK, Rs 62 in Germany and Rs 16 in India." The stock market index, the Sensex is at a record level. On 2 December, "After some end-of-the-session profit-taking at higher levels, the index logged a 185-point gain at 63,284 - a new closing high for the index. The sensex has now closed at a new high for six days in a row." "With an over 8% year-to-date (YTD) rise, the sensex is currently the best performing major index in the world in 2022. The increase is in sharp contrast to most global indices that are deep in the red." TOI. The Dow Jones Industrial Average is down nearly 7% YTD and the Nasdaq has crashed by 30% in the US. Inequality has decreased in India since 2011-12, wrote Prof Himanshu. The Gini coefficient is used to measure inequality with 0 indicating perfect equality and 100% indicating total inequality. wkipedia. The rural Gini in India "fell from 28.7 in 2011-12 to 25.8 in 2017-18. The decline was larger in urban areas, with the Gini reading falling from 36.7 to 32.9." This could be because "the poor were in a better position to weather the economic shocks and slowdown because of an expansion of India's social protection base over the past two decades." No wonder, US President Joe Biden promised to help his "dear friend" Prime Minister Narendra Modi during India's presidency of the G20. Zee News. India is flying. Fingers crossed

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