Highlights:
- The index of economic activity (CEM) grew at a subdued pace of 1% in July compared with 5.7% a month ago.
- It was the slowest growth in 18 months.
- Sequentially too, the index fell sharply to 108.9 in July from 117.9 in June.
- Weak trade data, mixed rural demand indicators and moderation in corporate bond issuances weighed on CEM growth.
- Services PMI, E-way bill issuances, power consumption and PV sales extended support.
- High food inflation, uneven monsoon progress and weak external demand are major headwinds to the economic performance in coming months.
