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

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.

India’s economic growth unexpectedly slowed to 4.4% in the three months to December. Economic expansion may be