Various indicators of the economy weakened in January, signaling dire conditions

MUMBAI: Various indicators of the country's economy have weakened in January, indicating that the situation will turn dire going forward. Economic figures are pointing to a slowdown in demand at home and abroad due to higher borrowing costs.

A decline in exports and impact on activity in the manufacturing and service sectors weakened business activity, which offset the increase in consumption.

A report prepared by Bloomberg pointed to a decline in the Purchasing Managers' Index (PMI) of the country's manufacturing and services sector in January, while the country's exports also fell by 6.58 percent in January, indicating weaker demand for Indian goods abroad.

In addition to exports, imports also fell, indicating a slowdown in demand for leisure goods.

Liquidity is tight in the financial system, but credit withdrawals picked up again last month.

Power consumption was almost stable last month, indicating demand in the manufacturing and industrial sectors. The peak power consumption in January was 173 GW as against 171 GW in December. According to the report, there is an increase in power consumption requiring heating due to cold weather.

However, declining unemployment rate, growth in vehicle sales and higher GST collections were favourable.