Higher mobility scores in Hyderabad and Pune took business resumption activity index to a new high for the week ended Sunday, a Japanese brokerage said on Tuesday. The Nomura India Business Resumption Index (NIBRI), which compared activity for a particular week against the pre-pandemic level of March 2020, came at 105 for the week ended Sunday, as against 100.5 in the previous reporting week, as per an official statement.
The brokerage, however, said this is an “aberration” led by a sharp rise in Apple driving data, and masks an otherwise modest business resumption. The rise was primarily due to a sharp 18 percentage point (PP) spike in the Apple driving index over the week, which reflects higher traffic localized in the cities of Hyderabad and Pune, it said. If one were to exclude the increase in Apple driving index, the NIBRI has risen by a modest 2 PP, it said, pointing out that GST e-way bills in September have underwhelmed, and credit growth has been sluggish at 6.7 per cent year-on-year, although railway freight and passenger revenues have improved.
The Google workplace index rose by 3.4 PP and the retail and recreation index fell by 0.1 PP. After three consecutive weeks of contraction, power demand registered tepid growth of 0.8 per cent as compared to the previous week while labour participation rate picked up to 41.3 per cent from 39.8 per cent the previous week. The upcoming festive season in Q4 2021 and the release of the arrears of ‘dearness allowance’ for public sector employees, should support consumption, although supply-side bottlenecks may weigh on near-term manufacturing growth, it said.