Business

Data: Economic slowdown is here, show various indicators

Photo for representation.

Photo for representation.  

The months of August and September marked among the lowest lows for the Indian economy, according to various indicators.

This was in line with what IMF chief Kristalina Georgieva suggested -- the emerging markets such as India will experience an even "more pronounced" effect admist a "synchronised slowdown" in the global economy.

Service sector down
Activity in the service sector fell in September 2019 to the lowest level since February 2018. Also, data on new work intake showed a decline in September following an 18-month rise.

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Credit to commercial sector down
Non-food credit from banks to the commercial sector from April 1 to September 13, 2019 was a negative ₹93,688 crore.

The negative figure indicates that the commercial sector saw more loan repayments than borrowings from banks. The commercial sector includes firms not engaged in farming, manufacturing or transportation.

Non-food credit denotes loans other than the ones used for buying produce from farmers.

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The core is weak
The volume of production in eight core industries in August 2019 grew at -0.5%, the lowest in 52 months Recession in the five sectors was first encountered in August.

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Confidence is down

Due to the slowdown, consumer responses marked an increase in pessimism among urban citizens in the most recent RBI confidence survey.

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Source: RBI monetary policy report, IHS Markit, MOSPI, RBI consumer confidence surveys

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Printable version | Mar 29, 2020 1:05:12 AM | https://www.thehindu.com/business/economic-slowdown-is-here-show-various-indicators/article29699664.ece

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