Strong demand powers Indian economy past record inflation, for now

The activity backed by stronger new orders was accompanied by a bump in output prices as producers started passing on high raw material costs to consumers

India’s economy maintained its momentum in April as a wider reopening from the pandemic kept rising prices from depressing demand for the time being.

Activity in the services sector as well as factories gained last month, while the three-month weighted averages of monthly changes in indicators from exports to credit demand suggested enduring strength. That helped keep the needle on a dial measuring so-called ‘Animal Spirits’ steady at 5 for the 10th straight month.

While April marked India’s early steps toward living with the virus, including the first full-month of commercial international flights after two years, risks loom