The leading economic indicators index for India, which measures future economic activity, remained flat in June after falling in the previous month, figures from the Conference Board showed Monday.
The Conference Board leading economic index remained unchanged month-over-month in June, following a 1.3 percent fall in May. In April, the index was up 1.4 percent.
A host of indicators, namely real effective exchange rate, merchandise exports, industrial production, capital goods, cargo handled and interest rate spread, contributed positively in June, while the services business activity and the SENSEX stock price index contributed negatively.
“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 coincident index, which reflects the current economic activity, increased 1.0 percent in June, after a 0.9 percent decline seen in May. Two of the three components contributed positively to the index in June.
The material has been provided by InstaForex Company – www.instaforex.com