The flu season is on its way Here’s what you need to know1. Small business optimism
Washington’s paralysis is never good news for the economy, so it was no surprise that, as politicians disagreed about whether or not the government would remain fully operational small business optimism initiatives, the National Federation of Independent Business Chief Economist Bill Dunkelberg exacerbated the Small Business Optimis reading in October The headline index dropped from 93.9 to 91.6 “probably due to a precipitous decline in hiring plans and expectations for future conditions of small business.” The index measuring hiring intentions fell 5 per cent or 4 points and the index calculation of planned capital outlays also fell. Fewer small businesses said they felt the economy was growing and it was a good time to expand now. “Small businesses aren’t fooled by headlines reporting record high stock market indices; every day they live the economic realities of over-regulation increased tax weak sales and a government with no direction or plan for the future,” Dunkelberg said. 2.
India’s Central Statistics Office for Industrial Production
announced on Tuesday that its industrial production index grew by just 2 per cent in September well below economist expectations for a 3.5 per cent increase. The data from September mark a disappointing year for Indian industrial production to date. Manufacturing output was only 0.1 per cent higher in the first half of the year than in the year-ago era. In October, the survey by HSBC India Manufacturing PMI showed no improvement in manufacturing business operation. The PMI index was unchanged at 49.6 suggesting a downturn in the market. Leif Eskesen HSBC’s lead economist for India and ASEAN said: “Order flows remain weak after two months of decline following a bounce-back in export orders. Furthermore, businesses continue to cut back on acquisitions and an increase in inventories indicates that production will remain subdued. Input price inflation has further increased amid the poor backdrop of growth as the impact of the depreciated exchange rate continue to pass through. Saddled with additional costs businesses have decided to lift sales prices in order to boost margins. Which means the RBI must continue its inflation staring contest. At 20281.91 the Mumbai Sensex closed down the day by 1.02 per cent. 3.
The ruling Communist Party of China’s economic reform
has officially relaxed its stance on market-driven economies. The Communist Party of China acknowledged better balance between business and government at the close of a four-day policy meeting in China. A redistribution of power is at the root of some of the proposed reforms which emerge from the meeting. Clearly, China and the world have become far too difficult to successfully manage a small ruling elite. “Delegating power is an intelligent choice because it can boost business and corporate efficiency and allow the market to determine what to do and where to go,” China Development Research Foundation Secretary-General Lu Mai said in China Daily. “But what is also critical is improved management and monitoring of some primary hot issues such as food safety and environmental pollution.” Hong Kong’s Hang Seng fell 0.73 per cent to 22901.41 and Shanghai’s SE Composite fell 0.82 per cent to 2126.77. Here’s What Helped Small Market Moves Monday.