Good news for India from the US

As per the latest numbers, the US economy expanded at the fastest pace in recent times of 4% as economic activity picked up big time.

More than expected accelerated economic growth of the US economy in the second quarter would help clock a stronger performance during the remaining part of the year.

 

 

  • Domestic demand rose at 2.8%, the fastest in 3 years.

 

  • Employment growth exceeded 200,000 jobs per month in the last almost 6 months.

 

  • Growth in consumer spending accelerated at 2.5%.

 

  • The savings rate increased to 5.3% from 4.9%.

 

  • Price index rose at a 2.3% in the second quarter, the quickest in three years.

 

  • Growth in the second quarter was due toincreased consumer spending.

 

  • Government spending, investments by business houses, and increased housing development activity helped the US economy register better numbers.

 

  • GDP of the US is likely to show a better growth trend compared with earlier expectations of around 2.5%.

 

Concerns over monetary policy also eased to an extent. We assume that the GDP data is not likely to impact the monetary policy, since the US Fed has already dismissed the abnormal first quarter contraction. The first quarter contraction is connected to the weather-related issues.

 

U.S. Economic Indicators

Indicator

Current Data

GDP Billion USD

16800

GDP YoY

2.40%

GDP QoQ

4.00%

Interest rate

0.25%

Inflation rate

2.10%

Jobless rate

6.10%

Gov. Budget

-4.10%

Debt/GDP

102%

Current Account

-2.30

Exchange rate

120

Population

317

 

The numbers mostly indicate that the US economy is going well on its recovery path, and with the US being one of the big services consumers for India, this would impact the Indian economy positively. Further, IT and other export-oriented companies are likely to benefit from this trend. Investors might expect Indian markets to remain strong, with the overall global economic outlook looking positive.

 

 

Happy investing…

Manish Tawde

Product Research & Financial Planning Desk

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing.

No votes yet.
Please wait...

Leave a Reply

fifteen − five =

"Prevent unauthorized transactions in your trading and demat account- Update your mobile numbers/email IDs with your Stock Broker and Depository Participant. Receive information of your transactions directly from Exchange on your mobile/email at the end of day. Receive alerts on your Registered Mobile for all debits and other important transactions in your demat account directly from CDSL on the same day’ call us on 02228584545 Email : customerservice@acm.co.in

Copyrights @ 2013 © Asit C Mehta Investment Interrmediates Ltd.(ISO 9001:2015 certified company)