The ongoing macroeconomic recovery is propping up the local stock market. Macroeconomic indicators continue improving Key macroeconomic indicators have steadily improved in the year to date, according to a recent report by SSI Securities Corporation. The index of industrial production (IIP), the purchasing managers’ index (PMI), and exports have grown significantly compared to the same period last year. Enterprises with foreign direct investment (FDI) have been driving economic growth. Trade has accelerated, with double-digit growth in July. The fact that import growth (24.7%) has outpaced export growth (+19.1%) is a positive sign, raising expectations for stronger exports in the final months of the year. Sectors with impressive growth in the IIP and exports include wood with 24.4%, electronics with 22.5%, mobile phones and components with 19.1%, and iron and steel with 19.5%. However, domestic consumption has not fully rebounded. Total retail sales of goods and services in July (at current prices) rose by 9.4% year-on-year and 8.5% in the first seven months of 2024. Still, the inflation-adjusted increase was only 5.2%, down from 9.8% during the same period last year. Total retail sales of goods grew by just 4.3% (excluding inflation), way below the growth rate before the Covid-19 pandemic. […]