'Leading Economic Index for India increased 0.7 per cent in May'

WASHINGTON: Confirming the solidifying of the economic outlook for India over the next few months, Conference Board Leading Economic Index ( LEI) for India has increased 0.7 per cent in May as seven of the eight components contributing positively, the US based body said.

"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 pick up in the pace of economic expansion in the coming months," he said.

"May's movement in the LEI confirms a solidifying of the economic outlook for India over the next few months," said Bart van Ark, Chief Economist at The Conference Board.

"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," he added.

The Conference Board Coincident Economic Index ( CEI) for India, which measures current economic activity, increased 0.7 in May to 203.

Two of the four components contributed positively to the index in May, a media release said. LEI for India aggregates eight economic indicators that measure economic activity in the country.

This includes interest rate spread, Stock Prices, real effective exchange rate index, 36 countries; real money supply, merchandise exports, cargo handled; and PMI.

Launched in September 2013, the Conference Board Leading Economic Index for India, conceptualised back to April 1990, has successfully signalled turning points in the economic cycles of India.

The Conference Board also produces LEIs for Australia, Brazil, China, the Euro Area, France, Germany, Japan, Korea, Mexico, Spain, the United Kingdom, and the United States.