Ten of the 16 indicators saw double digit growth in September (up from nine in August 2022), reflecting robust domestic demand in the run up to the festive season.

The year-on-year growth in the ICRA business activity monitor, an index of high-frequency indicators, improved to 13.4 per cent in September this year from 11.4 per cent in August amidst stocking ahead of the onset of the festive season at the end of the month. This indicates economic activity was healthy in September in the run up to the festive season.

Further, growth over the pre-COVID levels of 2019 widened to a record 20.6 per cent from 16.6 per cent in August.

While the early data for October is mixed, ICRA remains constructive on the festive demand, given the rising consumer confidence levels, pent up demand after two downbeat festive seasons in fiscals 2020-21 and 2021-22, record generation of goods and services tax e-way bills in September and the healthy auto retail sales during the Navratri festive period.

This may temporarily boost economic growth in the third quarter of this fiscal, but may not necessarily sustain thereafter, ICRA said in a press release.

Fibre2Fashion News Desk (DS)