The HSBC Markit Purchasing Managers Index (PMI) for Manufacturing has fallen to 50.5 in May 2013, which is the lowest in over four years.
Given this, and the dramatic fall in GDP, we might actually see the RBI cut rates some more very soon, perhaps even in June. However, bond yields rose about 7 basis points which might indicate the market doesn’t really think so.
Services PMI comes in on Wednesday – that’s been holding up the overall PMI. If that slows down too, it’ll be one more notch down for this indicator.
