The index print has risen by 5.3 per cent year on year (YoY) and by 4.6 per cent month on month (MoM). For the past fiscal, the average AMEP index has grown in double digits by 12.8 per cent YoY, given the significant base advantage with some COVID-lockdown impact in the latter year.
From the range of sixteen high-frequency indicators, fourteen domestic demand indicators have witnessed a sequential rise in March this year after factoring in the adjustments for February.
On an annualised basis, there were also three indicators that reported a contraction on expected lines. Both exports and imports have reported a drop of 9.1 per cent and 4.4 per cent respectively as compared to March 2022.
While exports of both commodities and manufactured goods have been adversely impacted in fiscal 2022-23 due to the global uncertainty, imports have also seen a declining trend given the moderation in crude purchase prices and slower demand for imported consumption goods, the rating agency said in a release.
Additionally, power generation has dipped by 3.1 per cent YoY in March this year, which the rating agency attributes to the lower residential demand amidst relatively moderate weather in the previous month compared to the heat wave experienced in previous March.
With both the PMI indices—manufacturing and services holding on well in the band of 55-58, a healthy optimism continues in the business environment, Acuité added.
ALCHEMPro News Desk (DS)
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