The Ministry of Finance today released its monthly Economic Review for October month. The report highlighted Macroeconomic developments of the previous month which point to a stable and resilient domestic economy, underpinned by easing inflationary pressures, sustained consumer demand, and the early benefits of recent policy measures. According to the report, Retail inflation eased to a series low of 0.25 percent in October, aided by GST rate cuts and broad-based easing in food prices. The report also underlined festive-season demand strengthened consumption indicators, with petrol consumption reaching a five-month high and automobile retail sales increasing 40.5 percent year-on-year.
The report underscored that services exports reached a historic high of 38.5 billion dollars in October, with the services surplus offsetting nearly half of the merchandise trade deficit. It also stated that Tractor sales recorded an eleven-year high in October, reflecting improved rural sentiment supported by favourable monsoon conditions and recent GST reforms. The report also highlighted that Manufacturing Purchasing Managers’ Index-PMI rose to 59.2 in October, while Services PMI remained robust at 58.9, indicating sustained expansion in both sectors.
