Thought for the day

Indian Economic Growth Powers Ahead in May

Sales Managers Index at 50 Month High.
All Sub Indexes Indicating Rapid Economic Growth.


 
16 June 2024
 
Indian Sales Managers report another month of rapid economic growth in May. All growth related indexes are now reflecting strong expansion across a wide variety of business sectors.

India Sales Growth Index: May 2024
Diffusion Index. (50 = 'No Growth')
Indian Economic Growth Powers Ahead in May
The overall Sales managers Index is at a 50 month high, and the key Sales Growth Index is also at a 50 month high.

The Business Confidence Index showing the vital "animal spirits" factor in economic growth is indicating that rapid expansion is expected over the second and third quarters of 2024.

And the Jobs Index, for so long reflecting business caution in recruiting after the difficult Covid period, is also at a 50 month high, suggesting that the fear of hiring has now evaporated, and businesses across a broad swathe of sectors are once again investing in people.

India: Staffing Levels Index

The only negative revealed by the survey is the persistence of price inflation, but this Index is at a comforting 6 month low, and in any event probably now reflects the inevitable price pressures caused by the rapid expansion of economic activity.

Overall, the survey results are very good news for Mr Modi, for his forthcoming election. And as long as the business boom doesn't degenerate into a election led business bust, good news for investors.
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