The Conference Board Leading Economic Index® (LEI) for India rose 0.8 percent in June to 182.3 (2004 = 100), following a 0.7 percent increase in May and a 1.3 percent increase in April. Six of the eight components contributed positively to the index in June.
"June's fourth straight monthly increase in the Leading Economic Index for India reflects solid improvements in the economy after subdued growth last year," said Jing Sima, Economist at The Conference Board. "While the recent rebound in economic activity resulted mainly from improved confidence on the back of the May elections, widespread strength in the financial and service sectors points to a stronger economic expansion in the second half of this year."
Bart van Ark, Chief Economist at The Conference Board, added: "Stock markets and business confidence contributed the most to this month's strengthening of the LEI. The challenge facing the Modi administration will be to deliver growth while at the same time managing to keep government expenditures down. This challenge will likely subdue any expectations of a rapid acceleration in India's economic growth."
The Conference Board Coincident Economic Index® (CEI) for India, which measures current economic activity, increased 1.7 in June to 207.7 (2004 = 100), following a 1.1 percent increase in May and a 1.2 percent increase in April. All four components contributed positively to the index in June.
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.