India: Industrial production expands at fastest pace in 16 months
December 12, 2012
In October, industrial production increased 8.2% over the same month the previous year, according to the so-called quick estimate for the index of industrial production (IIP). The reading contrasted the revised 0.7% drop recorded in September (previously reported: -0.4% year-on-year) and overshot market expectations of a 5.1% rise. The October expansion marked, in fact, the fastest growth rate recorded in 16 months.
The strong expansion was mainly driven by a sharp rebound in the manufacturing sector. On a use-based classification, the monthly figure reflected faster growth in all sub-categories, in particular in consumer goods.
As a result of the monthly reading, the trend is now pointing upwards, with annual average growth in industrial production rising from 0.6% in September to 1.7% in October.