The Nomura India Business Resumption Index (NIBRI) fell slightly to 85.3 for the week ending November 15, but was the highest since the blockade a week ago. This index tends to be 15 percentage points below pre-pandemic levels.
Brokerage firms pointed out the decline in momentum after the holiday season, the satisfaction of stagnant demand, and the potential drag of government growth as a major downside risk to the economy.
“But the potential for vaccines to be developed and distributed by the first half of 2021 could be an important buffer against these risks,” he said.
NIBRI tracks frequent indicators such as mobility, labor participation, and power consumption to assess post-pandemic recovery.
According to Gauge, mobility data continues to improve, Google’s workplace and retail and recreation mobility index has risen, and Apple’s driving index has fallen from last week but remains high, the Indian newspaper reported.
“But the labor market remains sluggish, with labor force participation below pre-pandemic levels, down from 40.2% last week to 39.5%. Electricity demand has also risen 8.7% last week. , Shrinked by 5.6% weekly. “
Nomura pointed out in a previous note that November performance is expected to outpace October’s rise if key indicators continue to improve in the first week of this month. NIBRI rose from 83.3 last week to 84.4 in the week until November 1st.
Overall, the index improved to 82.4 in October, up 2.6 points from 80.3 in September and 73.6 in August. Actual activity data also improved consistently in both September (core infrastructure output, Goods and Services Tax collection) and October (manufacturing purchasing manager index, car sales, diesel consumption).
Fiber2Fashion News Desk (DS)
According to Nomura, India’s economic recovery has improved mobility indicators due to weak labor markets and electricity demand, but this decline in momentum, stagnant demand satisfaction and government growth shackles have been a drag on the economy. This is an important downside risk.
India’s recovery momentum plateau in mid-November: Nomura
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