World Economics writes…Indian Economy Continues to Grow Rapidly in October with Headline Sales Managers’ Index at 59.0 but Multiplying Slowdown Signals Suggest Caution Regarding Future Months
Sales and Market Indexes continue to show growth, but rate of growth falling fast
Jobs Growth Index has fallen from its recent (2 years ago) high of 73.1 to close to 50.0
Despite still high business confidence,they expects a significant fall in GDP growth rate in the coming months
High frequency indicators such as auto sales, two wheeler sales, tractor sales also show sales are slowing. Passenger Vehicles sales fell 5.6% in sep YOY, followed with 12% degrowth in tractor sales YOY in sept .
Both are indicators of health of urban and rural economy. While rural can be explained on low farm income, urban slowdown can be best explained on general economic uncertainty and lack of Job creation .
A great job by Ritesh! But fund managers may be too busy trying to bring out optimistic reports and helpless investors continuing with their SIPs, watching their money turn into toilet rolls! The economy has been dealt many blows in the name of nationalism and now it is doddering, perhaps sinking! Now is the time to take two steps back and figure out which businesses shall do well after the next 3 years and then invest. For that long it shall take for the economy to revive at least.