India: Industrial production growth slows in August
Annual industrial production increased 4.3% in August, down from July’s revised 6.5% (previously reported: +6.6% year-on-year) but above market analysts’ expectations of 3.8% growth.
There was a mixed performance across industrial sectors in August. Solid output expansions in the manufacturing sector—which represents nearly 80% of total industrial production—and the electricity sector underpinned growth, whilst a contraction in mining output weighed on the overall result. In the manufacturing sector, 16 out of the 23 sub-sectors recorded production expansions in August, with the furniture; apparel; wood and cork products; and motor vehicles, trailers and semi-trailers sub-sectors recording the fastest rates of growth.
On a use-based classification, industrial production in August was supported by strong output growth of infrastructure and consumer non-durable goods. Meanwhile, production of consumer durable goods and capital goods increased at robust paces, while output of primary and intermediate goods grew slowly.