India’s October Economic Activity Boosted by Festival Demand

  • New orders rose to a two-month high, supporting stronger PMIs
  • Government warns of risks to trade from slowing global demand

Shoppers at a market ahead of the festival of Diwali in New Delhi, earlier in October. 

Photographer: Anindito Mukherjee/Bloomberg
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India’s seasonal festival demand helped spur business and consumption activity in October, even as the impact of a slowing global economy started to materialize.

Four of the eight high-frequency indicators tracked by Bloomberg News showed activity picking up pace from September to October, while one was unchanged and three came in weaker. That kept the needle on a dial measuring so-called animal spirits steady at 5. The gauge uses the three-month weighted average to smooth out volatility in single-month readings.