India: GDP growth slows for a fifth consecutive quarter
May 31, 2011
In the January-March period ? the last quarter of the fiscal year 2010/11 ? GDP grew 7.8% over the same period the year before. The reading represents the slowest pace of expansion in five quarters, confirming the notion that economic activity is cooling down. Furthermore, the relatively weak print undershot market expectations, which had the economy growing 8.1%. The slower pace of expansion was broad-based, albeit driven mainly driven by weaker growth in the agricultural sector, which moderated to a 7.5% expansion (Q3 2010/11: +9.9% yoy). The industrial sector also decelerated over the previous quarter, mainly as a result of the dismal performance of the mining and quarrying sector (Q3 2010/11: +6.9% yoy; Q4 2010/11: +1.7% yoy) as well as of manufacturing (Q3 2010/11: +6.0% yoy; Q4 2010/11: +5.5% yoy). In contrast, in the services sector, growth in the hotels, trade, transport, and communications sector, which accounts for more than a quarter of total output, picked up from 8.6% in the previous quarter to a 9.3% expansion.