India’s Economy Is Humming Along Even With Still-High Rates
- Most high-frequency indicators signal an improvement in May
- Weather, slowing exports key risks for its world-beatng growth
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India’s economic activity continued to expand in May thanks to buoyant domestic demand, assuring policymakers that rates can be kept higher for longer though the biggest risk now is heat waves and below-normal rains.
The needle on a dial measuring the so-called Animal Spirits stayed at six for a second month even as some indicators such as exports and tax collections showed signs of weakness. While four of the eight high-frequency indicators compiled by Bloomberg showed improvement, three worsened slightly and one was little changed.