Along with the drop in producer prices announced yesterday, the strong retail sales figures released today seem like it is indicative that the economy, although growing slowly, is not nearing recession.

a) like it is indicative that
b) as if to indicate
c) to indicate that
d) indicative of
e) like an indication of

OA C
I have onbe doubht with the explanation given in OG. for option D. It says "the adjective indicative of cannot introduce a clause"
How is indicative of an adjective