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Animal Spirits Get Worse as India Slowdown Spills Over to July

  • Car sales declined sharply and so did demand for trucks
  • Consumer durables and capital goods production have contracted
Customers inspect an SUV on display at a dealership in New Delhi, India.

Customers inspect an SUV on display at a dealership in New Delhi, India.

Photographer: Graham Crouch/Bloomberg

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Weakness in India’s investment and consumption activity worsened in July, with economic growth showing little signs of recovery from a five-year low.

A gauge measuring overall activity moved one notch toward weaker territory, as six of the eight high-frequency indicators compiled by Bloomberg fell from the previous month. Car sales slumped the most in almost two decades and latest data showed infrastructure sector output grew at the slowest pace in more than four years.