India's GDP slowed to a shocking 5 per cent for the first quarter ending June 30, 2019, as was hardly expected from a range of high frequency data. The Central Statistical Office, which released the data today, sprung an absolute surprise. The GDP number thrown by many polls was largely expected around 5.7 per cent.
A dramatic fall in consumption, slowing private sector investment, subdued services sector growth have all contributed to the slowing GDP numbers.
Agriculture grew at 2 percent in Q1 compared to a fall of 0.1 percent in the previous quarter. The mining and quarrying sector grew at 2.7 percent in Q1 compared to 4.2 percent in Q4. Manufacturing sector grew at 0.6 percent compared to 3.1 percent in the last quarter. Electricity and other public utilities grew by 8.6 percent in Q1 as against 4.3 percent last quarter.
Stock markets are unlikely to like the GDP too much and would react sharply when trading opens on Tuesday.