Key Highlights:
Global Economy
- IMF maintained 2023 global GDP growth forecast unchanged at 3%.
- US economy advanced by 4.9% in Q3 2023 showed the first advance estimate.
- US headline inflation unchanged at 3.7% y-o-y in September; Core CPI continued to moderate.
- US nonfarm payrolls rose to an 8-month high in September signalling labour market strength.
- China’s growth came above market expectations at 4.9% y-o-y in Q3 2023.
- China’s headline CPI was flat in September; factory output remained lacklustre.
- Housing transactions and new launches in China remain sluggish.
Domestic Economy
- Urban demand remained healthy, rural demand signals recovery.
- CPI inflation eased to 5% in September on sharp correction in vegetable prices.
- Moderation in inflation not broad-based; Price pressures in cereals, pulses and spices continued.
- Kharif rice, pulses and oilseeds output estimated lower due to erratic monsoon.
- Investment scenario disappointed with new announcements in Q2 at a 2-decade low.
- Merchandise exports remain pressured; Services export growth plateaued.
- 10-year bond yield rose to 6-month high on prospects of RBI OMO sale following hawkish Oct MPC meeting.
- Rupee fell to its lowest level in 2023 on narrowing yield differential, slowing FPI and rise in oil prices.
