Highlights:
- High-frequency economic indicators improved slightly in Oct following a temporary blip.
- Auto sales data pointed towards tapering urban demand while rural demand improved.
- Centre and state government capex fell by 15.4% and 10.5% (YoY) respectively in H1 FY25.
- Order books of capital goods and infrastructure companies recorded encouraging growth in H1 FY25.
- CPI inflation accelerated to a 14-month high of 6.2% in Oct. Core inflation rose by 20 bps to 3.7%.
- Food inflation rose to a 15-month high of 9.7% in Oct.
- This was due to high inflation in vegetables, edible oil, fruits, pulses, and cereals.
- Merchandise exports continue to navigate a path of uncertain recovery amid subdued external demand.
- Merchandise trade deficit increased to USD 137.5 bn in H1 FY25 Vs USD 119.3 bn last year.
- Services trade surplus remained healthy at USD 84.4 bn in H1 FY25 compared to USD 75.1 bn last year.
- Rupee hit a record low, driven by FPI outflows and a stronger dollar index.
