INSUBCONTINENT EXCLUSIVE:
Trade deficit remained elevated at close to $22 billion on the back of strong imports.India's economic momentum remained stable in December
even as the first signs of slowing output growth appeared across some industries.That's the reading from the overall activity tracker
comprising eight high-frequency indicators compiled by Bloomberg News
durables and automobiles signaled weakness as the year wound down.The reading probably worsened this month as omicron-fueled Covid-19 cases
spiked, forcing some Indian states to resort to virus-control measures including putting curbs on some services and businesses
That's likely to push India's policy makers to retain their accommodative bias as the government prepares its annual budget and rate-setters
get ready to review borrowing costs in February.Below are details of the dashboard.Business ActivityActivity in India's dominant services
sector expanded for the fifth month, and manufacturing for the sixth, although growth in new work and production lost some momentum,
While the composite index slipped to 56.4 last month from 59.2 in November, it held up above its long-run average.ExportsExports grew a
robust 39% year-on-year in December to $37.8 billion, the highest monthly tally on record led by commodities, chemicals and electronics
However, the trade deficit remained elevated at close to $22 billion on the back of strong imports.Consumer ActivityPassenger vehicle sales
fell for a fourth straight month, as production was hit by a global chip shortage
That aside, demand for bank credit grew a healthy 9.2% at the end of December from a year earlier, while liquidity conditions remained in
surplus last month.Industrial ActivityIndustrial production growth cooled to a nine-month low of 1.4% in November from a year earlier, which
QuantEco Research economist Yuvika Singhal attributed to factors including a post-festive drop in production and supply-side
disruptions.Output at infrastructure industries, which makes up 40% of the industrial production index, eased to 3.1% in November
Both data are published with a one-month lag.(This story has not been edited by TheIndianSubcontinent staff and is auto-generated from a
