The Conference Board Leading Economic Index® (LEI) for India increased 0.7 percent in May. The index stands at 181.0 (2004 = 100), following a 1.4 percent increase in April and a 0.3 percent increase in March. Seven of the eight components contributed positively to the index in May.
"Financial indicators and exports contributed to May's large increase in the Leading Economic Index for India," said Jing Sima, Economist at The Conference Board. "Sentiment and consumption have also rebounded sharply on the back of a positive outcome from the May general election. The acceleration in the six-month growth rate of the LEI suggests a pickup in the pace of economic expansion in the coming months."
Bart van Ark, Chief Economist at The Conference Board, added: "May's movement in the LEI confirms a solidifying of the economic outlook for India over the next few months. The newly elected government will have an opportunity to benefit from improved confidence, although rising food and energy prices remain challenging to a sustained economic recovery."
The Conference Board Coincident Economic Index® (CEI) for India, which measures current economic activity, increased 0.7 percent in May to 203.1 (2004 = 100), following a 1.1 percent increase in April and a 0.7 percent increase in March. Two of the four components contributed positively to the index in May.
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.