Early signs of lockdown impact in high frequency data

A number of high-frequency indicators on electricity demand, vehicle production and traffic congestion all show that activity levels have plummeted since the nationwide lockdown began last week. The further value of these indicators will come after the lockdown ends to see how quickly activity returns to normal. But that might be a while away. While PM Modi made no mention of extending the restrictions beyond 15^th April in today’s video message, coronavirus cases are rising rapidly and containment measures may be less effective in India than in richer economies. This in turn means that the measures will need to remain in place longer.