Economy nea pre-pandemi level: Nomura

Economic activity showed record expansion in the week ending August 8, according to the widely watched Nomura India Business Resumption Index (NIBRI), which soared to stand at 99.4, up from 94.0 last week, mainly because of Covid-19 cases remaining under control and higher mobility of people, according to data released on Monday.

“This index is near the prepandemic level of 100, and surpassing the pre-second-wave peak (of 99.3 in mid-february),” said research analyst Sonal Varma in a note.

The Nomura India Business Resumption Index is compiled with data from various trackers, such as Google, Apple driving index and electricity demand. These are known as high-frequency data because they change frequently.

After briefly plateauing, mobility picked up sharply, with Google workplace, retail and recreation and Apple driving index rising by 7.4 percentage points, 5.3 percentage points and 6.7 percentage points, respectively, the latest data showed.

A percentage point is equal to a 100 basis points, while a basis point is one-hundredth of a percentage point.

Electricity consumptio key indicator of the pace of nomic activity. According t Nomura index, power dem rose 5.3% week on week a shrinking for three consecu weeks.

The labour participation rose to 41.5% from 39.8% p ously. This means more pe are looking for jobs, which pushed up the unemploym rate to 8.1%.

The business resump index soared in part bec coronavirus disease c “remain flat at 40,000 per d Nomura, a securities firm,

With nearly 5 million d of vaccination a day, the “v nation pace is higher than daily rate of 3.9 million in J it said.

These data, however, widely throughout states, states such as Karnataka Tamil Nadu have incre restrictions, while Maharas has announced further rel tions.

“Overall, the latest rise in NIBRI corrects its platea since mid-july, and suggest swifter-than-expected reco from the second wave sl has continued in early Aug Whether the surge in mob in turn, triggers a third wav key risk that we continu monitor,” Varma said