India Was On Recovery Path Just Before Second Wave Derailed Progress

Fresh activity curbs amid the world's worst Covid-19 outbreak in India merit a real-time reading of the economy using other indicators.

Economic activity in India picked up speed last month, signaling it was well on the road to recovery before a new wave of coronavirus infections derailed progress. The needle on a dial measuring so-called animal spirits moved a notch higher for the first time in six months in March, based on the three-month weighted average numbers of eight high-frequency indicators tracked by Bloomberg News. While last month's score -- helped by faster exports and improved liquidity -- cements a solid showing in the January to March quarter, fresh activity curbs amid the world's worst Covid-19 outbreak in India merit a real-time reading of the economy using other indicators. A basket of high-frequency, alternative and market indicators pointed to a sharp slump in services activity in the week to April 25, Abhishek Gupta, India economist at Bloomberg Economics, said in a note Wednesday. Here's more India data worth tracking in the days ahead: