Economy Under Threat of Slowdown...A Cause of Concern

"Economic Growth is Slowing Down"

This is evident with the latest data released by Moody's & Goldman Sachs...The Manufacturing Sector's Growth in the 1stQ, 09 has dropped to a new low of 3.8%. Its not just this which is attributing to the new signs of the slowdown, but the factors of International Crude Prices, Inflationary Pressures, Food Crisis, Concerns regarding the negative returns in the Emerging Markets like India, China, Philippines and all....

The instability at the Central Govt is also adding to this situation. The Govt is putting all its efforts to save it self on the D-Day i.e. 22nd July,08 to clear the floor test in Parliament.

Certain steps are required to be taken by the Central Govt and its related agencies to curb the factors leading to the fears of slowdown....Concerns are that the Bottom Line of the Blue Chip Cos are now growing @ 10-15% as compared to 30-40% a year back. There are concerns regarding the high costs of debt for the cos is another issue hampering the expansion plans and thereby affecting the growth.

Due to the above mentioned concerns, Sectors like Aviation, FMCG, Capital Goods, Petroleum, Automobile and this list can go on and on are facing the scares of slowdown. This is gona show its affect on the new numbers of the 2nd and the 3rd Quaters of the current financial year. Its not just the Manufacturing which is being hit, the services sector is also getting the hammering. This is clearly shown in the latest numbers that there is a fall of 6 lakh consumers that have stopped flying as compared to the last year.

One can just be optimistic and face this situation with persevierence , correct plan work and having a competitive spirit to face the lows....(How to fight the lows, read my othe blog, quizardo.blogspot.com, the post of Grey Skies)...

BE optimistic and Plan for better returns till my next post!!... " :) "