August 20, 2023
1 min read

Index of economic activity grows slowly at 1% in July

Weak trade data, mixed rural demand indicators and moderation in corporate bond issuances weighed on CEM growth….reports Asian Lite News

The index of economic activity (CEM) grew at a subdued pace of 1 per cent in July compared with 5.7 per cent a month ago, as per the CareEdge Ratings Economic Meter.

It was the slowest growth in 18 months. Sequentially too, the index fell sharply to 108.9 in July from 117.9 in June.

Weak trade data, mixed rural demand indicators and moderation in corporate bond issuances weighed on CEM growth.

However, services PMI, E-way bill issuances, power consumption and PV sales extended support.

As per the report, high food inflation, uneven monsoon progress and weak external demand are major headwinds to the economic performance in coming months.

Indicators of rural demand performed poorly in July. While two-three wheeler sales were down nearly 8 per cent, tractor sales remained unchanged compared to a year ago level as incessant rains and flooding in some parts of the country impacted the demand.

Heavy rains also restricted mobility which impacted petroleum consumption in July. It recorded a muted growth of 2 per cent during the month, down from 4.5 per cent growth a month ago.

The unemployment rate improved in July to 7.95 per cent from a month ago at 8.45 per cent due to higher demand for agricultural labour.

However, it was still much higher than a year ago at 6.83 per cent in July 2022, the report said.

ALSO READ: China’s property woes deepen with Evergrande’s bankruptcy

Previous Story

India and New Zealand review bilateral engagements

Next Story

West Bengal to invest Rs 2,500 cr World Bank loan in infrastructure

Latest from Business

GST Reform Fuels Record Car Sales Surge

India’s automotive industry is experiencing a massive boost following the implementation of GST 2.0, with car sales more than doubling to over half a million units in just a month, according to

India’s E&M Sector Enters a New Growth Phase

India’s cinema market is multilingual, and many regional industries are now rivalling Hindi output in volume and box-office share … writes Rafeek Ravuther The Indian film sector is undergoing a meaningful transformation.

SBI Simplifying KYC Process

SBI’s research arm noted that the RBI’s decision to maintain the policy rate reflects a balanced approach amid global uncertainties, supported by stable liquidity and external conditions State Bank of India (SBI)

UPI Powers Digital Revolution

New innovations such as LiteX (offline payments), tap-and-pay, credit card integration, UPI Autopay, and UPI for IPO subscriptions are pushing the platform from a payment tool to a full-fledged embedded finance ecosystem Unified
Go toTop

Don't Miss

8% surge in Pak public debt in 11 months

The central bank data on Monday (July 5) revealed that

Unprecedented exodus in Pakistan amidst economic turmoil

While official figures paint a dire picture, the reality could