Q2 GDP at - 7.5% buttresses recovery as captured by several high-frequency indicators. Economic impact is primarily due to #COVID19, good news is falling daily cases are due to lower transmission & not due to lower testing. To sustain economic recovery, caution must continue - FM
FM Says:
- High PMI Indices for Manufacturing and Services with manufacturing PMI at a decadal high
- Broad-based recovery is underway
FM Says:
- Index of Industrial Production enters positive territory
- Index of 8-core industries regains previous year levels in September
V-shaped recovery in use-based Industries especially in consumer goods, especially consumer durables, and investment, especially capital and infrastructure goods suggest a strong revival of both consumption and investment, which together account for about 90% of India’s GDP – FM
Corporate sector back on track in Q2 2020-21 after two quarters of contraction, level of operating profits similar to that in Sep 2018 - FM
FM Says:
- Steel production and consumption gathers momentum signalling revival of construction activity.
- Power consumption and E-way bills clocked double digit growth in October suggesting buoyancy in industrial and commercial activities
FM Says:
- Recovery ignites optimism, but a cautious optimism
- Sustainability of the recovery critically depends on keeping the pandemic in control
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