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Performance of high-frequency indicators become ‘uneven’ in August as unlock benefits taper: ICRA
Sep-21-2021

ICRA Ratings in its latest report has said that with the benefits of unlocking measures tapering out, the performance of the high-frequency indicators have become ‘uneven’ since August 2021 especially when compared to the pre-COVID levels. It appears that the temporary boost, provided by the easing of state-wise restrictions after the second wave of COVID-19 ebbed, petered out. However, it said the upcoming festive season will see a rise in confidence-boosting demand, and added that it is ‘cautiously optimistic’ about it.

According to the report, the year-on-year (YoY) performance of eight of the 15 high-frequency indicators weakened in August 2021 compared to July 2021, partly on account of the normalisation of the base. Besides, it said passenger vehicle output was impacted because of the non-availability of semiconductors. It noted that indicators showing an improvement include the output of Coal India (CIL), electricity, ports cargo traffic, GST e-way bills and non-oil merchandise exports.

The report further said the performance of the 13 non-financial indicators in August 2021 was mixed in both month-on-month (MoM) as well as pre-COVID terms. Particularly, after a sharp recovery since June 2021, the daily average generation of GST e-way bills rose only mildly to 2.13 million in August 2021 from 2.07 million in July 2021. Icra attributes this to stabilization in dispatches rather than a signal that the industrial growth momentum is plateauing.

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