India: Industrial output growth rebounds in June
August 11, 2011
In June, industrial production increased 8.8% over the same month last year, according to the so-called quick estimate for the index of industrial production (IIP). The reading exceeded the upwardly-revised 5.9% expansion seen in May (previously reported: +5.6% year-on-year) and beat market expectations that had industrial production rising 5.5%. The pick up in industrial production was entirely due to stronger manufacturing activity, which accelerated from a 6.1% increase in May to a strong 10.0% in June. In contrast, growth in mining as well as in electricity generation moderated from the previous month. On a use-based classification, the improvement came on the back of a robust expansion of capital goods production, which accelerated from 6.1% in May to an extraordinary 37.7% expansion in June. In contrast, the production of consumer goods slowed from 6.7% in May to 1.6% in June. Owing to the strong print, the trend in industrial production improved, up from 7.4% in May to 7.6% in June.