Economy report card: Animal spirits waiver as election uncertainty looms

Overall activity slightly better than January, but risks lurk

India’s economy showed conflicting signs of a recovery in a climate clouded by uncertainty ahead of a general election beginning next month.

Overall activity in February picked up slightly from the previous month, according to a slew of high-frequency indicators compiled by Bloomberg News to measure ‘animal spirits’ -- a term coined by British economist John Maynard Keynes to refer to investors’ confidence in taking action. However, subdued exports growth, a sharp drop in imports and waning output prices signaled the economy is performing below its potential.

Animal spirits teeter

Teetering economic activity will give the central bank’s Monetary Policy