An increase within PMI (purchasing managers’ index) for the manufacturing data for the month of May. With the lower bond yields, prices of oil & a higher rupee on 3rd June provided finance ministry an indication of sensing that higher GDP growths are just around the place.
The PMI of Nikkei for manufacturing upsurges to nearly 52.7 in May. Moreover, rising from almost 51.8 in April, owing to the sturdiest improvement within the sector’s health in the past 3 months.
In PMI idiom, a print more than 50 means development, whereas a score under this signifies a contraction.
The data arose within a few days after the formal figures prove that the growth of GDP reduces to a 5-year low of nearly 5.8 % in the 4th quarter of FY’19. This also has drawn down the growth of the economy to almost 6.8 % for FY19.
In the meantime, the same day rupee halts at Rs 69,26, which is up by 44 paise.
This drove Finance Secretary Subhash Chandra Garg for tweeting that higher economic growth isn’t far away.
“A reversal within the demand as well as financing conditions (is) starting very well. PMI manufacturing is at nearly 52.7. Also, crude has been moving towards almost 60 dollars/barrel. Moreover, government bond yield has slipped below 7 %. Extent for NBFCs or HFCs above the government bond is contracting. The rupee has firmly been below 70 (against the dollar). These are some assure symbols of upcoming higher growth,” Garg tweets.