India's animal spirits are hushed as consumer demand remains subdued

India’s economic growth showed little signs of a recovery from a six-year-low, with investment and consumption activity in August remaining fairly subdued.

The dial on a gauge measuring overall economic activity was stuck in the same position as the previous month, with two of the eight high-frequency indicators compiled by Bloomberg News showing weakness and five others staying steady. Car sales in August slumped the most on record while demand for bank loans weakened, underlining worsening consumer spending.

The dashboard measures “animal spirits” -- a term coined by British economist John Maynard Keynes to refer to investors’ confidence in taking action --