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.

As of August 21, 2024, net foreign portfolio investments (FPI) amounted to negative $0.4 billion, marking a sequential decline of $6.2 billion compared to $5.8 billion recorded at the end of July 2024.

On the other hand, as per the IMD forecast released on August 1, 2024, rainfall across India during the second half of the southwest monsoon season (August to September 2024) is most likely to be above normal. The monthly average rainfall for August 2024 across India is expected to be within the normal range.

Goods and Services Tax (GST) collections continued to remain buoyant year-on-year. The total outstanding credit of Scheduled Commercial Banks increased by 17.4 percent year on-year in June 2024, moderating from 19.8 percent in May 2024; credit growth decelerated for personal loans and services sector in June 2024 compared to May 2024.

Consumer Price Index (CPI) headline inflation declined in July 2024, mainly due to an easing of food inflation. Wholesale Price Inflation (WPI) also declined in July 2024.