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India: Industrial production eases in December

February 12, 2015

In December, industrial production expanded 1.7% compared to the same month of the previous year. The reading was below November’s 3.9% expansion and undershot the 1.8% expansion the market had expected.

The slowdown in December was broad-based. Manufacturing production expanded 2.1% over the same month of the previous year, which was below November’s 3.1% increase. Mining contracted 3.2% in December, contrasting November’s 3.9% expansion and hitting an 18-month low. In addition, production of electricity slowed.

On a use-based classification, the figure was driven by a deterioration in the production of capital goods, basic goods and intermediate goods. Consumer goods expanded in December, which contrasted November’s contraction.

Despite the slowdown, the trend improved. Annual average growth in industrial production rose from 1.3% in November to 1.5% in December.

FocusEconomics panelists expect industrial production to increase 3.6% in fiscal year 2014/2015, which is unchanged from last month’s forecast. For fiscal year 2015/2016, the panel expects industrial output to expand 5.5%, which is unchanged from last month’s forecast.


Author: Angela Bouzanis, Senior Economist

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