Which are the indicators pointing to economic recovery?

Whether it is manufacturing or some other index, ultimately everything will result in Consumer Spending.

This indicates that people have (i) disposable income to spend (ii) confidence on their sustainability earnings.

This indicates overall economic activity, and hence Consumer Spending is the appropriate index.

I mean the GDP of ours was 6.5% this time around and the next year it is projected to be more and Asian countries are really doing well at the moment and work is again coming back to India, with India having back offices and R&D centers for most of the big companies across the world and Indian consumers are started spending again and this is a really good sign and a good indicator pointing towards economic recovery.

If as an individual your purchasing power goes up then, you can presume that markets have recovered. Till such time dont even think that markets have recovered.

We look at the equity market, recruitment by corporates, Inflation data, IIP data and then we say that Markets have recovered or are recovering.

When we had deflation, did we ever get 1 kg of rice free of cost with Rs.2 as added bonus for buying rice from the merchant. No, infact the price of Rice during deflation was Rs.40 per kg...compared to price when inflation was at 7%

If we look at the October strategy report from HSBC, we can clearly understands, which are the key indicators that drive the economic recovery. I believe that PMI which is the indicator of the economic health of the manufacturing sector will be the real indicator pointing to economic recovery. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.

when there will be adequate money flow across the sectors ,be it household,industrial or service and output figures supporting the amount invested would be the sign of recovery .if the surplus have arised from cost cutting and lay offs.then such measures will surely solve the problem for short term or may even result in gains.but there is  need for restoring confidence in economy ,so that people approach banks for credit for high end(or capital asset) purchase and industrial group carrying on with their expansion projects and service sector is bagging deals from bigger firms would be true green shots.FOREMOST,if major part of GDP comes from agriculture,sme's and retained tax revenues would also be assuring inclusive growth.