Despite the small gain in the Leading Economic Index for India in January, the slower rate of six-month change in both the LEI and CEI for India suggests that the economy is off to a slow start in the new financial year, said Jing Sima, Senior Economist at The Conference Board. While low oil prices, favorable terms of trade, and the recent monetary easing will provide some lift to India's economy, persistent weaknesses in both domestic and external demand suggest growth is unlikely to substantially improve this year.
The Conference Board Coincident Economic Index (CEI) for India, which measures current economic activity, decreased 2.1 percent in January to 105.3 (2010 = 100), following a 1.6 percent decline in December and a 6.9 percent increase in November. One of the three components contributed positively to the index in January.
The Conference Board LEI for India aggregates eight economic indicators that measure economic activity in India. Each of the LEI components has proven accurate on its own. Aggregating individual indicators into a composite index filters out so-called noise to show underlying trends more clearly.
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