The Conference Board Leading Economic Index® (LEI) for India increased 0.2 percent in March. The index stands at 177.5 (2004 = 100), following a 0.4 percent decline in February and a 0.9 percent increase in January. Four of the eight components contributed positively to the index in March.
Said Jing Sima, Economist at The Conference Board: "Sharp gains in stock prices and a more competitive exchange rate helped the Leading Economic Index for India increase in March. Meanwhile the Coincident Economic Index, which gauges current economic conditions, showed a strong improvement after a very weak February. Although it is too early to conclude that the current cyclical slowdown has come to an end, the recent acceleration in the LEI growth is signaling a slightly faster pace of economic expansion in the coming months."
Bart van Ark, Chief Economist at The Conference Board, added: "Even though the short-term gain in the Leading Economic Index is still modest, the continued improvement in the 6-month average and the strengthening in current economic conditions suggest a stronger start of the new financial year."
The Conference Board Coincident Economic Index® (CEI) for India, which measures current economic activity, increased 1.5 percent in March to 201.5 (2004 = 100), following a 1.6 percent decline in February and a 0.3 percent increase in January. Three of the four components contributed positively to the index in March.
The Conference Board LEI for India aggregates eight economic indicators that measure economic activity in India. Each of the LEI components has proven accurate on its own. Aggregating individual indicators into a composite index filters out so-called "noise" to show underlying trends more clearly.