India: Industrial output growth inches up
October 12, 2011
In August, industrial production grew 4.1% over the same month last year, according to the so-called quick estimate for the index of industrial production (IIP). The reading came in slightly above the revised 3.8% increase recorded in July (previously reported: +3.3% year-on-year) but undershot market expectations of a 4.7% expansion. The acceleration was the result of stronger growth in manufacturing, which stepped up from a 3.2% increase in July to a 4.5% expansion in August. In contrast, activity in both the mining as well as the electricity sectors deteriorated over the previous month. On a use-based classification, the improvement was underpinned by a rebound in the production of capital goods, which swung from a 13.8% contraction in July to a 3.9% increase in August. That said, all remaining categories ? basic, intermediate and consumer goods ? grew at a slower pace compared to July. Despite the subdued reading, the trend in industrial production stabilized, with annual average growth unchanged at 7.0%.