Economy has remained resilient, but outlook softer: NCAER

High-frequency indicators reveal that the domestic economy has remained resilient, but the “outlook remains softer” due to moderation in a couple of indicators, National Council of Applied Economic Research (NCAER) said in its monthly economic review for August 2024.

The Purchasing Managers’ Index (PMI) for manufacturing and services declined marginally in July 2024 but maintained its expansionary momentum. Growth in the Index of Industrial Production (IIP) and IIP for core industries moderated in June 2024.

“The year-on-year growth in non-electric two-wheeler sales slowed to 12.5 percent in July 2024 from 21.3 percent in June 2024. Additionally, there was a sequential decline of 10.7 percent in sales growth for non-EV two-wheelers,” the review report said.

Sales across different categories of EVs show mixed trends. The sales of electric two-wheelers increased by 95.9 percent in July 2024 on a year over-year basis and by 34 percent sequentially. The sales of electric four-wheelers decreased by 2.9 percent in July 2024 year-over-year but increased by 4.6 percent sequentially, it said.