Business Standard

India's steadying economy shows early signs of weakening consumption

Economic expansion may be under pressure as the "full-blown impact" of the Reserve Bank of India's 250 basis point hike in borrowing cost since May gets transmitted to end-consumers, Crisil Ltd., the

Photo: Bloomberg

Photo: Bloomberg

India’s economic activity held steady in February though there were early signs of slowing consumption amid concerns of future growth prospects and hawkish monetary policy. 
The needle on a dial measuring the so-called animal spirits was unchanged from January when it moved left after picking up speed for the last month of 2022, signaling weakening domestic demand is becoming a concern. Eight high-frequency indicators tracked by Bloomberg showed moderating credit growth, weak tax revenues and a rising unemployment rate.

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First Published: Mar 21 2023 | 8:11 AM IST

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