The May IIP number came in at 2.7% as against 1.4% in April while a CNBC-TV18 poll conducted earlier saw it coming in at 1.45%.
Abheek Baruah, Chief Economist at HDFC Bank, said the IIP numbers are certainly better than that of the forecasts and it does confirm the expectations of a recovery that are building-in. He is of the view that the improvement in the IIP number is consumption-driven. He added that the consumption side is doing better than expected and that may be because of the combination of income transfers.
Agreeing to Baruah’s view, Atsi Sheth, Chief Economist at Reliance Equities, said consumption tends to be the first to pick-up said in the first stages of recovery. She added if that wasn’t picking-up I would be very worried and less worried. “GDP between October and March was pushed-up largely by government spending and you want to see that spending reflected in the private sector,”
source: CNBCTV18
Abheek Baruah, Chief Economist at HDFC Bank, said the IIP numbers are certainly better than that of the forecasts and it does confirm the expectations of a recovery that are building-in. He is of the view that the improvement in the IIP number is consumption-driven. He added that the consumption side is doing better than expected and that may be because of the combination of income transfers.
Agreeing to Baruah’s view, Atsi Sheth, Chief Economist at Reliance Equities, said consumption tends to be the first to pick-up said in the first stages of recovery. She added if that wasn’t picking-up I would be very worried and less worried. “GDP between October and March was pushed-up largely by government spending and you want to see that spending reflected in the private sector,”
source: CNBCTV18
0 comments:
Post a Comment