Economy stabilises in India since November

 All eight high-frequency indicators tracked by Bloomberg News were steady last month, keeping the needle on a dial measuring the so-called ‘Animal Spirits’ unchanged at 5. The level was arrived at by using the three-month weighted average to smooth out volatility in the single-month readings.The pace of activity thus far was enough for the nation’s central bank to revise its forecast for the economy, which it now expects to exit a recession in the current quarter to December.

Business Activity

Activity in India’s dominant services sector expanded for a second straight month in November, although at a slower pace. The Markit India Services Purchasing Managers’ Index was at 53.7 last month versus 54.1 in October, with a reading above 50 indicating expansion. IHS Markit, which conducts the survey, said the level of positive sentiment had climbed to the highest since February amid predictions that conditions would normalize once a vaccine is rolled out.

Advertising

Your future advertising space? Our media data

Exports lost some momentum last month, declining 8.7 percent in November from a year ago as trading partners were hit with fresh restrictions amid a second wave of Covid-19 infections. Gems and jewelry and engineering goods exports were a drag, although a deeper fall was arrested by healthier shipments of drugs and pharmaceuticals along with farm products. Imports were weak, with demand for capital goods still subdued and remains a possible cause for worry.