Fortnightly summary of India’s Economic Data – Some observations
1.Huge spike in commercial paper issuances led by some leeway from RBI to banks and strong demand from not only NBFC/HFC but also from manufacturing sector on account of inventory rebuilding.
2.Surprisingly strong Petrol and Diesel consumption in face of rising prices.when prices rise the consumption should reduce but we are seeing strong demand and this is bad for trade deficit.
3.Purchasing Managers Index (Composite PMI) at a year high. This indicator shows robust economic momentum.
4. Biggest area of concern continues to be Trade deficit.Tepid growth in exports but strong growth in wasteful electronic imports.
