With eight of the 16 high-frequency macroeconomic indicators in the red and only four in green, the Indian economy continues to remain weak, Mint Macro Tracker shows
The Indian economy’s momentum continues to slow, shows the latest update of the Mint Macro Tracker, launched in October last year to provide a state-of-the-economy report each month based on trends across 16 high-frequency economic indicators. The Mint Macro Tracker shows that out of the 16 macroeconomic indicators, only four were in the green (above the five-year average trend) as of January 2019, while eight indicators were in the red (below the five-year average trend). This reading is significantly worse than what it was six months ago, the data shows.
January’s score is also a shade worse than that of December 2018—which itself marked a downward slide compared to previous months—when five indicators were in the green, and eight indicators were in the red. The domestic consumer economy remains the weakest spot, with automobile sales falling, air passenger traffic sluggish, and tractor sales anaemic.
Data from the consumer confidence surveys of the Reserve Bank of India (RBI) shows that the gap between respondents who claim to have raised non-essential spending and respondents who claim to have lowered non-essential spending has been shrinking in recent months, with 14.3% net positive response in December 2018 compared with 22.3% net positive response in September 2018.