QuantEco's DART (Daily Activity and Recovery Tracker) Index for week ending 16th Jan-22 witnessed its third consecutive weekly contraction although the pace of moderation eased from last week.
Download ReportDART index: Slips below 100, gives up all post pandemic gains
QuantEco’s DART (Daily Activity and Recovery Tracker) Index for week ending 16th Jan-22 witnessed its third consecutive weekly contraction although the pace of moderation eased from last week. On WoW basis, the index contracted by 4.3% versus a sharp drop of 10.5% in the previous week (revised up from -9.1%)
The COVID wave in India is showing initial signs of a let up, with daily confirmed cases easing by nearly 12% over the last two days. While still early to pronounce it as a trend, we are watching the caseload closely for a decisive inflection point. While the third consecutive drop in DART index did not come as a surprise; but the pace of decline in economic activity despite restrictions remaining fairly diluted compared to previous waves has been rather sharp and swift. In a span of just three weeks, DART index has wiped off all its post pandemic upside to slip below the baseline of 100. This to our minds, reflects a faster response of the economy (both businesses and consumers alike) to the virus upheavals. As the tide of COVID cases turn, the current downtime in economic activity could prove to be short, followed by as swift a jumpstart in mobility and economic activity once again.