India: Industrial production contracts in June
August 11, 2017
Industrial output fell 0.1% annually in June, the worst result since June 2013 (May: +2.8% year-on-year). The downturn was led by falling manufacturing output, which dropped for the first time since November 2015. Electricity production also lost steam, while mining output grew at a slightly faster pace.
On a use-based classification, the production of primary, intermediate and capital goods all fell. The poor result is also influenced by the remarkable 8.0% increase seen in June 2016 as well as uncertainty ahead of the GST implementation.
Annual average growth in industrial production fell from 3.9% in May to 3.2% in April.