Economics

Fewer Virus Curbs Help India Manage War-Induced Price Pressures

  • March services activity posts strongest showing since December
  • But rising costs are seen as a drag on growth going forward
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India’s economic activity held steady in March as the lifting of most virus containment measures boosted demand, keeping war-induced price pressures from dampening the recovery for now.

A slew of data from services activity to bank credit pointed to the return of demand last month. The needle on a dial measuring so-called ‘Animal Spirits,’ however, remained at 5 as the gauge uses the three-month weighted average reading to smooth out volatility in the single-month numbers.