Cautious optimism

Incoming data must be read carefully

Some of the high-frequency numbers released on Monday have attracted significant attention. The government data showed goods and services tax (GST) collection reached an all-time high of Rs 1.87 trillion in April, which was 12 per cent higher than that in the same period last year. Sustained, higher GST collection can not only help in managing government finances, but, being a tax on consumption, it also indicates the overall health of the economy. Further, backed by new orders and output, India’s Purchasing Managers’ Index for manufacturing increased to a four-month high of 57.2 compared to 56.4 in March. A reading