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

RBI Holds Rates, Boosts Outlook

One of the most significant announcements was the upward revision of India’s GDP growth forecast for FY 2025–26—from 6.5% to 6.8% In a move reflecting cautious optimism, the Reserve Bank of India

Nykaa Expands Global Footprint with UK Debut

To commemorate this significant global debut, Nykaa’s leadership hosted an exclusive soiree at the George Club in Mayfair, London Nykaa, India’s leading beauty and lifestyle destination, is set to make a grand

Nothing’s CMF Goes Indian with $100M JV

Company has announced a $100 million joint venture with Indian electronics manufacturer Optiemus Infracom Limited….reports Asian Lite News Smartphone maker Nothing has spun off its budget sub-brand CMF into an independent subsidiary,

Airbnb Boosts India Economy

Among international guests, the largest inbound sources were the United States, United Kingdom, Canada, and Australia Hospitality giant Airbnb made a significant impact on India’s economy in 2024, contributing Rs 113 billion

Rupee, Markets Gain Amid Trade Optimism

Emerging market currencies, including the rupee, have gained support amid softening in the dollar. Reports suggesting that the US economy is on the verge of a recession have contributed to the greenback’s
Go toTop

Don't Miss

Brexit cost UK economy £29bn

Haskel said he approached the calculation using business investment as

New Japanese PM sets sights on reviving economy

Fumio Kishida promised to increase middle-class incomes and reduce wealth