ZyFin on Thursday announced its business cycle indicator (BCI), a lead indicator to the IIP, for the month of January 2014. The index has registered a year-on-year growth of 4.8 per cent in January as against 4.7 per cent in December suggesting an expansion in industrial activity in February. This improvement, which follows the uptick in December, suggests that industrial activity has bottomed out.
The agency said improving trends have been observed in economic indicators, such as revenue from railway freight, electricity generation, domestic air travel and external sector. However, concerns still remain over rising non-plan expenditure and constrained money supply in the economy.
Giving his views on the December numbers, Debopam Chaudhuri, Vice President of Research and Development, ZyFin Research, said, "Consumer confidence has been inching up for the last three months as measured by ZyFin's Consumer Outlook Index. This further lends support to the bottoming out of industrial activity."
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