The Coincident Index (CI) declined by 0.2% from 123.4 points to 123.2 points in July 2008. Index of industrial production (-0.2%), salaries & wages in manufacturing sector (-0.2%), employment in manufacturing sector (-0.1%) and contributions in EPF (-0.1%) were the contributors to the decrease of this index.

The six-month smoothed growth rate of CI slipped to -0.2% in the current month.

The Leading Index (LI) posted a decrease of 0.8% at 159.4 points in July 2008 as compared to 160.6 points in the previous month. All components in the LI contributed negatively to the index except eight major trading partners (0.5%) and number of new companies registered (0.3%). The six-month smoothed growth rate of the LI registered a drop at 3.0% in the current month.

The Lagging Index (LGI) fell by 1.2% to 144.1 points in July 2008. Contributors to the weaker index were excess lending to private sector (-2.5%) and number of investment projects approved (-0.1%). The six-month smoothed growth rate of LGI moved down to -7.7% in the current month.

The six-month smoothed growth rate of LI at 3.0% suggests that the economic scenario in the near term period remain favourable. This is supported by the positive growth of LI for the first half year of 2008.