New Delhi, July 11 -- The Indian economy is showing signs of improving consumption demand in the first quarter of the financial year 2025-26 (Q1FY26), according to a recent report by Bank of Baroda.

The report highlighted the high frequency indicators that point towards a pickup in economic activity across various sectors compared to the previous quarter.

It stated, "High frequency data available for Q1FY26 so far shows that consumption demand appears to be improving compared with last quarter.... domestic inflation remains in favour which hints at softer monetary policy".

The report expects this trend to continue, with investors remaining hopeful about the successful completion of the India-U.S. trade deal before the August 1 deadline...