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Even as Covid-19 rages, Indian economy's animal spirits are stabilising

Five of the eight high-frequency indicators compiled by Bloomberg News gained last month, while two were unchanged and one deteriorated

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Activity in India’s dominant services sector continued to pick up, with the main index rising to 41.8 in August.

Anirban Nag | Bloomberg
India’s economy showed signs of stabilizing in August with manufacturing and services gradually improving even as coronavirus cases escalated across the country.

Five of the eight high-frequency indicators compiled by Bloomberg News gained last month, while two were unchanged and one deteriorated. That kept the needle on a dial measuring so-called animal spirits steady at 4 -- a level arrived at by using the three-month weighted average to smooth out volatility in the single-month readings.

A strong rebound is still a far way off though as a surge in virus cases continues to disrupt activity and has led