Macroeconomic snapshot1 min read . Updated: 03 Nov 2016, 02:50 AM IST
India's credit growth has continued to slow, while double-digit declines in capital goods production continue to weigh on overall industrial production
The upcoming US elections and the timing of the next rate hike by the US Federal Reserve will remain the dominant themes coming out of the US heading into 2017. The US economy continues to chug along. In the euro zone, industrial production activity appears mixed across the major countries. China’s fixed-asset investment appears to be stabilizing, having grown 8.4% on a year-to-date basis, while year-on-year growth in retail sales has continued to hover in the 10.2%-10.4% range through 2016. India’s credit growth has continued to slow, while double-digit declines in capital goods production continue to weigh on overall industrial production. Although the Reserve Bank of India (RBI) lowered its policy rate recently, the room for further cuts may be limited. Household three-month-ahead inflation expectations have risen to 9.5% year-on-year while the one-year-ahead inflation expectations have risen to 11.4% year-on-year according to the RBI’s September survey.