India: Industrial production declines slightly in April
June 10, 2016
Industrial production suffered a small contraction in April. Industrial production fell 0.8% compared to the same month last year, which followed March’s almost flat 0.1% increase. The print surprised market analysts, who had expected a modest 0.5% expansion.
April’s drop was driven by a stronger contraction in manufacturing output, which fell 3.1% annually following a 1.2% drop in March. The fall in manufacturing production offset gains made in electricity production, which grew 14.6% (March: +11.3% year-on-year), and mining, which expanded 1.4% (March: -0.1% yoy).
On a use-based classification, the contraction in capital goods intensified in April and consumer goods production experienced a mild decline. In addition, growth in production of intermediate goods remained stable, while basic goods production grew at a faster pace than in the previous month.
As a result, the trend continued to point downward. Annual average growth in industrial production eased from March’s 2.5% to 2.2%, which represented a 15-month low.
Author: Christopher Mc Innes, Economist