MOSL: ECOSCOPE-Economic activity faltered again in June 2017-Expect real GDP growth to improve to ~6.5% in 1QFY18
​ECOSCOPE: Economic activity faltered again in June 2017; Expect real GDP growth to improve to ~6.5% in 1QFY18
After healthy growth in April and May 2017, India's economic activity index (EAI) grew only 1.1% YoY in June 2017. Though 1QFY18 was better than 4QFY17, it was considerably weaker than 3QFY17 and previous quarters.
A sharp decline in fiscal spending led to a deceleration in consumption growth to 4.6% YoY in June 2017, while renewed weakness in construction activity and capital goods led to the first decline (of 0.5% YoY) in investments in four months.
After declining ~2% YoY in 4QFY17, investments grew marginally (<1%) in 1QFY18. Further, trade deficit widened significantly, implying that consumption - mainly fiscal spending - remains the key driver of the anemic growth in the economy. Based on our composite EAI, we expect real GDP growth to improve slightly to ~6.5% YoY in 1QFY18.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.