MUMBAI: Amidst elevated global uncertainty, various high-frequency indicators for May 2025 point towards resilient economic activity in India across the industrial and services sectors, the Reserve Bank of India (RBI) said on Wednesday in its June Bulletin.
High-frequency indicators for May present mixed signals on aggregate demand. Urban demand showed signs of moderation as passenger vehicle sales declined with a sharp drop in entry-level segment. However, rural demand improved as evident from the increase in the retail sales
of two-wheelers.
“High-frequency indicators of aggregate demand for May suggested a pick-up in rural demand, especially given the strong performance of the agricultural sector,” the article titled State of the Economy in the June Bulletin said, reflecting improving conditions in the country’s hinterland after months of uneven recovery.
The section has been prepared under the guidance of RBI Deputy Governor Poonam Gupta.
The domestic prices situation remains benign with headline inflation staying below the target for the fourth consecutive month in May. Financial conditions remained conducive to facilitate an efficient
transmission of rate cuts to the credit market.
Employment indicators in May 2025 present a mixed picture. As per monthly Periodic Labour Force Survey (PLFS), the all-India unemployment rate rose to 5.6 per cent in May from 5.1 per cent last
month, with a sharper increase in rural vis-à-vis urban areas.
Increase in unemployment was partly driven by seasonal agricultural patterns and extreme heat in some regions, limiting outdoor work.
Organised job listings, as per the Naukri JobSpeak Index, moderated – dragged down by information technology (IT), retail, and banking and financial services – while sectors like insurance, real estate, oil and gas and emerging technologies recorded growth. However, the PMI
employment diffusion indices signalled strong job creation in organised manufacturing and services.
