“The reported recovery data needs to be seen against
Infections are high in urban areas and companies are not using their full capacity due to social distancing norms.”On consumption, we find stable sales of staples and a pick up in certain discretionary segments. One consistent feedback from companies has been stronger growth in rural areas compared to urban,” said Nomura.”The reported recovery data needs to be seen against the backdrop of pent up demand, higher economic activity during the start up phase (only around 40 percent of the economy was functional during lockdown) and higher inventory stocking by businesses and households. Seen in this context, the data thus far does not inspire confidence.
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