Business activity picked up in the second quarter of 2015, largely on the back of better investment demand and improvements in commercial vehicle sales, Goldman Sachs said today.


The global financial giant said its composite gauge of business activities is showing a gradual recovery after a "surprising slowdown since the last quarter of 2014", but it cautioned that there is not yet a broad-based recovery.


"While on balance activity data seem to be turning more positive, we would caution that there is not yet a broad-based recovery," Goldman Sachs said in its Global Macro Research Report authored by Tushar Poddar and Vishal Vaibhaw.


The Goldman Sachs India Current Activity Indicator (CAI) increased to 5.6 per cent in May from 4.3 per cent in April and 4.4 per cent in the first quarter of this year. CAI is an activity index that maps monthly and sequential