India: Industrial production rebounds in September
November 11, 2016
Industrial production in India returned to growth in September, after recording contractions for two consecutive months. Industrial output expanded 0.7% compared to the same month last year, which contrasted August’s 0.7% fall. The print overshot market analysts’ expectations of a smaller improvement to a 0.5% increase.
September’s result was driven by chiefly by gains in the manufacturing sector. Manufacturing output swung from a 0.3% contraction in August to a 0.9% expansion in September. In addition, electricity output grew 2.4% after posting meagre growth of 0.1% in August and the fall in mining moderated to a 3.1% decrease (August: -5.6% year-on-year).
On a use-based classification, the production of basic and consumer goods gained steam in September. However, output of intermediate goods slowed, while the contraction in capital goods production moderated.
The trend continued to point downward. Annual average growth in industrial production eased from August’s 0.7% to 0.5%, which represented a 29-month low.