Economic activity weaker in July
Economic activity appears to have remained weak in July and the three-month low manufacturing PMI, falling water reservoir levels, weak growth in freight traffic and CV sales and declining PV sales were only partly offset by better rail passenger traffic and power generation, Motilal Oswal Financial Services said in a research. Economic activity weakened in Jun'23 also. Preliminary estimates indicate that the growth in India’s EAI for GVA decelerated to its eight-month low of 6.4 per cent YoY in Jun’23.
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New Delhi Economic activity appears to have remained weak in July and the three-month low manufacturing PMI, falling water reservoir levels, weak growth in freight traffic and CV sales and declining PV sales were only partly offset by better rail passenger traffic and power generation, Motilal Oswal Financial Services said in a research. Economic activity weakened in Jun'23 also. Preliminary estimates indicate that the growth in India’s EAI for GVA decelerated to its eight-month low of 6.4 per cent YoY in Jun’23.
The deterioration was led by the non-farm sector, as industrial sector growth slowed to 8.7 per cent YoY in Jun’23 and the growth in the services sector too moderated to its eight-month low of 6.0 per cent YoY in Jun’23. Our estimates suggest that EAI-GVA growth in 1QFY24 weakened to 7.4 per cent YoY, from 8.1 per cent YoY in 4QFY23 and 14.9 per cent YoY in 1QFY23, the report said. EAI-GDP also grew 3.7 per cent YoY in Jun’23 marking below-4 per cent growth for the fourth successive month. While consumption growth improved to four-month high of 5.1 per cent YoY in Jun’23, investments growth decelerated to its eight-month lowest level of 5.4 per cent in Jun’23.
