SBI noted in its latest research update Ecowrap that it's Composite Leading Indicator which is a basket of 33 major leading indicators is showing a flattening trend in Q1FY20. The percentage of indicators showing acceleration has come down from 45% in Q4 FY20 to 26% in June. The bank is expecting the GDP growth to slow down further from 5.8% in Q4 of FY19 to % in 5.6 Q1 FY20 on account of automobile sales, deceleration in air traffic movements, flattening of core sector growth and declining Government capex. Considering the present macro environment, it will be difficult to achieve the 7% growth target this fiscal. The SBI's primary estimate suggests that GDP growth will be closer to 6.5% in FY20.
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