India’s Nikkei India Manufacturing Purchasing Managers’ Index (PMI) slipped a bit to 52.1 in September, compared with 52.6 in August.
The chart shows how well India has fared in manufacturing sector growth in September against the previous month, among the countries in Asia.
Several countries saw their PMI dip below the 50-mark, which indicates their manufacturing sectors contracted from the previous month.
Pollyanna De Lima, an economist at Markit, said of the Indian manufacturing PMI, “Although inflation rates edged higher, these remain weak by historical standards and indicate that we may still see the RBI (Reserve Bank of India) loosening monetary policy in 2016.”
Personal loans account for almost half of total loans
Forty-five per cent of the growth in non-food bank credit outstanding during the year till 19 August was on account of personal loans extended by banks.
As the chart shows, loans to agriculture contributed 22% of the total growth in non-food credit, while lending to the services sector accounted for a little more than a third of the loans.
Credit to industry contracted. Within the personal loans section, housing loans outstanding contributed as much as 23% of the growth in non-food credit, while vehicle loans accounted for 5.5%.
Although credit card outstanding amounts are up 26.8% year-on- year, they do not amount to much and accounted for 1.8% of the loan growth.
Offshore appetite for EM debt picks up
Weekly inflows into local bonds in India and Indonesia were as high as $661 million and $645 million versus a net selling of $55 million and $430 million, respectively, seen in the previous week, HSBC Research pointed out in a note to clients.
But the inflows weren’t uniform across all emerging markets (EMs).
Foreign holdings of South Korean government debt declined by $916 million, the largest fall in four weeks.
“Domestic factors are one of the key drivers of offshore demand for EM bonds. Moreover, increasing expectations that monetary policies in developed markets are close to exhaustion are unlikely to shift the tide of flows into EM debt,” HSBC’s analysts said in the note.