India’s economic calendar this week will focus on employment, infrastructure activity, business growth and the country’s external financial position.
The key data releases include the unemployment rate, infrastructure output, HSBC Manufacturing and Services PMI figures and foreign exchange reserves.
Unemployment data to show job market trends
India’s unemployment rate data for July will be released on August 17. The figures will be watched for signs of changes in labour market conditions.
The unemployment rate among women increased to 5.9 per cent in June from 5.6 per cent in May. For men, the rate eased to 5.3 per cent from 5.4 per cent.
Infrastructure output to reflect industrial momentum
Infrastructure output data will be released on August 20 and will offer an update on activity across the country’s core sectors. Growth in India’s nine core sectors rose to a five-month high of 5 per cent in June from 3.2 per cent in May, according to the Ministry of Commerce and Industry.
The June data was the first release under a revamped Index of Core Industries (ICI), which uses 2022-23 as the base year. The new series covers nine sectors instead of eight, with iron ore added to the basket.
Iron ore emerged as the biggest driver of growth, with output rising 43.9 per cent in June. Electricity and coal also recorded strong growth, helping offset weakness in petroleum-related sectors.
The overall index stood at 119.6 in June, compared with 120.1 in May.
PMI data to gauge private-sector activity
The HSBC Manufacturing and Services PMI Flash data will be released on August 21. The readings will provide an early indication of business activity in the manufacturing and services sectors.
India’s manufacturing PMI fell to 53.5 in July from 54.2 in June. This reading was the lowest since August 2021, although it remained above the 50 mark that separates expansion from contraction.
Services activity also slowed sharply. The HSBC India Services PMI fell to 53.3 in July from 57.4 in June, marking its lowest level since February 2022.
New business growth in the services sector also weakened, pointing to softer demand across much of the sector. Among the broad segments covered by the survey, finance and insurance was the only one to record faster growth in both new business and output.
Forex reserves to show external sector strength
Foreign exchange reserves data will also be released on August 21.
India’s forex reserves rose sharply by $14.136 billion to $707.002 billion in the week ended August 7, according to the Reserve Bank of India.
Foreign currency assets, the largest component of the reserves, increased by $9.946 billion to $574.625 billion during the week. Gold reserves also rose by $3.995 billion to $108.738 billion. Special Drawing Rights increased by $79 million to $18.745 billion.
