The Conference Board Leading Economic Index® (LEI) for India decreased 0.7 percent in August to 102.8 (2010 = 100), following a 1.7 percent increase in July and a 0.1 percent decline in June. Positive contributors to the index were PMI: services business activity, cargo handled*, and the interest rate spread. On the other hand, merchandise exports, the real effective exchange rate, industrial production: capital goods*, the SENSEX stock prices index, and M3: bank credit to commercial sector declined in August.
"The Leading Economic Index for India declined in August and is still struggling to gain traction," said Jing Sima, Senior Economist at The Conference Board. "The lack of upward momentum in the LEI suggests that the pace of India's economic expansion is unlikely to accelerate this year. Despite ongoing monetary and fiscal support, disappointing exports, depreciating currency value, and increased portfolio outflows continue to weigh on the outlook for India's economy."
The Conference Board Coincident Economic Index® (CEI) for India, which measures current economic activity, decreased 0.3 percent in August to 110.5 (2010 = 100), following a 1.3 percent increase in July and a 0.8 percent increase in June. Only industrial production* increased in August.
* August figures are based on The Conference Board estimates
Note: The shaded area denotes growth cycle chronologies as determined by The Conference Board based on deviations from trend in an index consisting of the components of The Conference Board CEI for India and real GDP.
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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