Mumbai: RBI has said that a rebound in economic activity and mobility in February has resulted in an improvement in consumer and business confidence. It has attributed the resumption of activity to sharp receding of third wave.
“The Indian economy steadied in February 2022 after some moderation of pace in the preceding month when the third wave was at its peak. By March 15, 2022, however, the third wave receded sharply, with the seven-day average of daily infections plunging below 3,500,” the State of the Economy Report published in RBI’s monthly Bulletin, said. The central bank, however, acknowledged that geopolitical crisis has heightened the uncertainty clouding the global macroeconomic and fiscal landscape, while financial markets are unsettled by rise in oil and commodity prices.
“In the absence of an early solution to the ongoing conflict, the crisis can have adverse implications for the global recovery, necessitating downward revisions of global growth for 2022 and beyond,” the report said.
According to RBI, mobility around retail and recreation activity, grocery and pharmacies, parks, workplaces and transit stations are above pre-pandemic levels. “The job market remained ebullient, with the Naukri JobSpeak index climbing to its highest level in February 2022,” the report said.
The report, which acknowledges inflationary pressure on input prices, does not see that being fully passed on to consumers. “Input costs rose further in February across manufacturing and services as reflected in the purchasing manager indices. Selling prices, however, rose only marginally across manufacturing and services in February.”