The FINANCIAL — The Conference Board Leading Economic Index(R) (LEI) for India was unchanged in June at 101.9 (2010 = 100), following a 1.3 percent decline in May and a 1.4 percent increase in April. Industrial production: capital goods, cargo handled, the real effective exchange rate (36 countries), merchandise exports, and the interest rate spread contributed positively to the index in June. However, the PMI: services business activity index and the SENSEX stock prices index contributed negatively, offsetting the positive gains.
“The flatness in the Leading Economic Index in June and the volatility of recent months suggest India’s short-term economic growth environment will remain challenging,” said Jing Sima, Senior Economist at The Conference Board. “The service sector and equity market indicators continue contracting despite low energy prices and stimulative policies. In addition, the pickup in consumer prices and depreciation in currency, if sustained, will limit room for India’s central bank to take on further monetary easing measures.”
The Conference Board Coincident Economic Index(R) (CEI) for India, which measures current economic activity, increased 1.0 percent in June to 109.6 (2010 = 100), following a 0.9 percent decline in May and a 3.5 percent increase in April. Two of the three components contributed positively to the index in June, according to Nasdaq.
The Conference Board LEI for India aggregates eight economic indicators that measure economic activity in India. Each of the LEI components has proven accurate on its own. Aggregating individual indicators into a composite index filters out so-called “noise” to show underlying trends more clearly.
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