India: Industrial production eases in July
September 11, 2015
In July, industrial production expanded 4.2% compared to the same month last year. The reading was below June’s revised 4.4% increase (previously reported: +3.8% year-on-year), but overshot the 3.5% expansion that market analysts had expected.
July’s slowdown was driven by weaker manufacturing growth. Manufacturing production rose 4.7% over the same month last year, which was below June’s 5.4% rise. In contrast, electricity production picked up from June’s 1.3% expansion to 3.5% growth in July and mining swung from a 0.5% contraction in June to a 1.3% expansion in July.
On a use-based classification, the figure was driven by a deterioration in the production of consumer goods and basic goods Production of capital and intermediate goods improved compared to the previous month.
Despite the weaker performance in industrial production, the trend improved in July. Annual average growth in industrial production moved up from June’s 2.5% to 2.8% in July.