Economics

India’s Steady Recovery Thrown in Doubt by Spike in Virus Cases

  • Both services and manufacturing sectors expanded last month
  • Car and tractor sales growth robust, but demand for loans soft
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India’s consumption demand and business activity looked steady in February, although chances of a strong recovery appeared doubtful after a sharp surge in virus cases and the increasing risk of renewed lockdowns.

The dial on a gauge measuring so-called animal spirits showed activity cruising at a steady pace for the fifth straight month, with all eight high-frequency indicators tracked by Bloomberg News holding their ground last month. The number was arrived at by using the three-month weighted average to smooth out volatility in the single-month scores.