Manufacturing, exports data show grim Indian outlook

MUMBAI (Reuters) - Indian manufacturing activity shrank for a fourth straight month in February and exports fell again in January, showing the economy remained under pressure in early 2009 and bolstering expectations of a rate cut.

The data followed figures last week showing economic growth at its slowest in nearly six years at the end of 2008, and analysts said that the worst may not have passed despite a number of government stimulus packages and Reserve Bank policy easings.

"Essentially we don't think the economy has bottomed out yet," said Nomura economist Sonal Varma, who expects the economy to hit a trough of 4.5 percent annual growth in the June quarter.

"We clearly feel both room and need for further rate cuts with economic activity having deteriorated much faster than what was earlier expected," she said.

Manufacturing, which accounts for about 16 percent of Asia's third-largest economy, showed some improvement in February from January, but still contracted and the fall in new orders from local and foreign clients picked up pace.

The ABN AMRO Bank purchasing managers'index (PMI) , based on a survey of 500 companies, rose to a seasonally adjusted 47.0 in February from January's 46.7. A reading below 50 signals economic contraction.

"The series correlates reasonably well with exports and offers a crumb of comfort in what remains a generally depressing environment," said Rober Prior-Wandesforde, senior Asian economist at HSBC.

Exports fell 15.9 percent in January from year earlier, a fourth straight fall as the global downturn weakened demand, government data showed.

Still, the trade deficit narrowed to $6.1 billion in January from $7.6 billion in December as import values dropped 18.2 percent, mainly due to the sharp fall in oil prices.

For April to January, the first 10 months of the fiscal year, exports rose 13.2 percent to $144.3 billion from a year earlier, but the trade deficit grew to $99.1 billion from $66.8 billion.

India's economy grew an annual 5.3 percent in the December quarter. Full-year growth in the 2008/09 fiscal year ending on March 31 is expected to be around 7 percent, well below rates of 9 percent or more in the previous three fiscal years.

"In terms of domestic economic activity, I think we are probably going to see some downside on the private sector side," said Atsi Sheth, chief economist at Reliance Equities.

"I think what is going happen this quarter and the next quarter is that the government spending is going to be so strong, that it will partly compensate for it, but not fully," she said.

Policy makers have responded to the slowdown with a slew of steps aimed at shoring up faltering demand. The central bank has aggressively cut its policy rates since mid-October, and expectations of further cuts are growing.

The government has cut factory gate taxes and stepped up spending to stimulate the economy.

Source: http://in.reuters.com/

New Online B2B Guide for Small Businesses

Manchester, UK – Failing to look for new sales opportunities could mean the difference between small business success and failure according to a new online guide, Sales Leads Steps for Success, produced by B2B data and business list supplier infoUK.

The search for new sales and customers should never stop, even during a recession. Businesses that focus solely on looking after their current customers while neglecting to develop new business are making themselves more vulnerable to failure, according to the guide’s author, Richard Lloyd, general manager of infoUK.

The practical eBook guide was designed to give small business owners and those new to B2B marketing, valuable insight on affordable and easy ways to find new customers. It also includes advice on how to measure the success of B2B marketing campaigns to make sure they are cost effective. The ‘Sales Leads Steps for Success’ guide is available to download at www.infouk.com.

“Businesses don’t need to spend a fortune to bring in new customers; it’s about working more intelligently,” says Richard Lloyd. “By looking at your best existing customers, you can identify trends and find more prospects just like them. Those prospects are often the best place to start when targeting new business.”

Sales Leads Steps for Success teaches businesses how to grow by providing simple, quick, and cost effective steps to find and capitalise on new business opportunities. Additional insights include:

· Planning objectives for success
· What questions to ask business list and B2B sales lead suppliers
· How to get the most out of direct mail and other direct marketing activities
· Tips on email marketing
· What to consider when setting a budget
· The best ways of measuring the success of marketing campaigns.

Source: http://www.utalkmarketing.com/