Latest data shows global economy is improving

Moneycontrol News

India jumped to the 100th position, from 130th last year, in World Bank's Ease of Doing Business ranking on the back of the reforms implemented over the past few years. In a way, it shows that Indian economy and norms are becoming more open and fewer to set up a businesses. This should attract more domestic and foreign investments.

Along with India, economies of US, Eurozone and Japan are also showing signs of improvement.

US Economic Confidence Index

The US Consumer Confidence Index reading in October is at its highest in nearly 17 years. The monthly survey looks into business conditions, upcoming developments, consumer attitudes and buying intentions taking age, income, and region as the three factors of the study. The index shows that the US will be able to boost its growth by the end of this year.

The study shows that consumers' optimism towards business in the future has increased, as compared to the flat response they received last month. Taking into account all the other data reports, the index result is due to rising wage growth and sustained increases in the house prices as on August which is likely to help the Fed raise its interest rates in December.

Eurozone Economic Confidence Index

The Eurozone Economic Confidence Index, which looks into consumers and sector-wise confidence growth, shows that economy has reached its highest in 16 years.

The Eurozone, which has been recovering from its 2009 Eurozone crisis, is likely to witness a more robust growth in the near future. The study shows that the index rose 0.9 points to 114.2 — highest since January 2001.

The report points that the manufacturing sector and foreign trade are likely to pull up the economy of the member countries in the near future.

Japan's consumer spending

Japan's consumer spending on retail goods — clothes and daily products — rose in September showing that expenditure in consumer products is likely to remain strong due to a tight labour market.

Tight labour market indicates that there are more jobs available than workers actually working in the sector. This is cited as one of the main reasons for the increased expenditure in consumer goods.

The study shows that there has been a 2.2 percent increase in retail sales. If this continues in the future, the consumer expenditure is likely to increase the prices. Earlier, Japan's Central Bank, Bank of Japan, had claimed that they will be able to handle the inflationary pressures. If the economy claims to handle the pressures, then this is likely to boost the economy's growth in the future.