India: Growth in industrial production edges down from multi-year high in September
November 13, 2015
In September, industrial production expanded 3.6% compared to the same month last year. The reading was below August’s revised 6.3% increase (previously reported: +6.4% year-on-year), which had marked a multi-year high. In addition, September’s result undershot market analysts’ expectations of a 5.0% expansion.
September’s dip was driven by slower growth in the manufacturing and mining sectors. Manufacturing production lost steam, declining from a 6.6% increase over the same month last year in August to a 2.6% rise in September. In addition, mining production slowed to 3.0% growth (August: +3.8% yoy). However, electricity production recorded its best result in almost a year, accelerating to a 11.4% expansion (August: +5.6% yoy).
On a use-based classification, the slowdown was driven by weaker growth in the production of capital, intermediate and consumer goods. However, basic goods recorded a larger rise than in August.
Despite the softer growth in industrial production, the trend remained unchanged in September. Annual average growth in industrial production stabilized at August’s 3.3%.