Economic activity witnessed sharp deceleration last week: QuantEco

Amidst widening restrictions to curb spread of Omicron infections, QuantEco’s daily activity and recovery tracker (DART) index witnessed a steep decline of 9.1 per cent for the week ended 9 January 2022. With this, the DART index has now regressed to 105.3 as compared to 115.9 in previous week. As per QunatEco, this is the sharpest pace of contraction since April 2021. At a granular level, strong pullback was seen in traffic congestion, Apple mobility, railway passenger traffic and online restaurant searches.

QuantEco has retained its GDP growth forecast for 2021-22 at 9.6 per cent. However, it stated that they are closely monitoring Covid related developments as they unfold. For 2022-23, the agency has projected a GDP growth of 7.5 per cent driven by a combination of rollover of pent-up demand along with an uneven pick up in private capex in select sectors.