India Industry July 2016

India

India: Industrial production swings to contraction in July

September 12, 2016

Industrial production deteriorated in July, recording the largest fall since November 2015. Industrial output contracted 2.4% compared to the same month last year, which contrasted June’s revised 2.0% increase (previously reported: +2.1% year-on-year). The print notably undershot market analysts’ expectations of a deceleration to 1.4% growth.

July’s downturn was driven by broad-based deteriorations in the index. Manufacturing output swung from a 0.7% expansion in June to a 3.4% contraction in July, a three-month low. In addition, electricity output fell to a 1.6% expansion (June: +8.3% yoy) and mining production grew a meagre 0.9% (June: +5.3% yoy).

On a use-based classification, the production of basic, intermediate and consumer goods all lost steam. In addition, the contraction in capital goods production intensified.

As a result, the trend continued to point downward. Annual average growth in industrial production eased from June’s 1.9% to 1.3%, which represented a 21-month low.

FocusEconomics panelists expect industrial production to increase 6.2% in fiscal year 2016, which is unchanged from last month’s forecast. For fiscal year 2017, the panel expects industrial output to expand 6.9%.


Author: Angela Bouzanis, Senior Economist

Sample Report

Looking for forecasts related to Industry in India? Download a sample report now.

Download

India Industry Chart


India Industry July 2016 0

Note: Year-on-year and annual average variation of industrial production index in %.
Source: Ministry of Statistics and Programme Implementation (MOSPI) and FocusEconomics calculations.


India Economic News

  • India: Price pressures ease in June

    July 14, 2017

    In June, consumer prices rose 0.53% from the previous month, which followed May’s 0.23% rise.

    Read more

  • India: Industrial production growth eases in May

    July 14, 2017

    Industrial output growth slipped to 1.7% annually in May from April’s 2.8%, according to the recently revised industrial production index.

    Read more

  • India: Trade deficit widens in June

    July 14, 2017

    Recently released data related to India’s external sector showed that the trade deficit totaled USD 12.9 billion in June, which was a greater shortfall than the USD 8.1 billion gap recorded in June 2016 (May 2016: USD 13.9 billion deficit). The deterioration in trade data came on the back of robust growth in imports.

    Read more

  • India: Economic conditions mixed in June

    July 5, 2017

    Activity in India’s manufacturing sector moderated in June, as water shortages and apprehensions over the government’s GST reform impacted activity.

    Read more

  • India: Trade deficit widens in May

    June 16, 2017

    Recently released data related to India’s external sector showed that the trade deficit totaled USD 13.9 billion in May, which was a greater shortfall than the USD 6.8 billion gap recorded in May 2016 (April 2016: USD 13.3 billion deficit). The deterioration in trade data came on the back of a surge in imports growth.

    Read more

More news

Search form