India: Industrial production expands for second consecutive month
October 11, 2013
In August, industrial production expanded 0.6% over the same month last year, according to the Quick Estimate of the Index of Industrial Production (IIP). The reading followed the revised 2.8% increase observed in July (previously reported: +2.6% year-on-year) and came in well below market expectations of a 2.4% rise. The sluggish expansion in August reflected a deterioration in manufacturing production (July: +3.2% yoy; August: -0.1% yoy), which offset an acceleration in energy supply (July: +5.2% yoy; August: +7.2% yoy). In addition, mining activity contracted for the eleventh consecutive month. Meanwhile, annual average growth in industrial production inched down from 1.2% in July to 1.1% August. FocusEconomics panelists expect industrial production to increase 3.9% in fiscal year 2013/2014, which is down 0.4 percentage points from last month's forecast. For fiscal year 2014/2015, the panel expects industrial output to expand 5.6%, which is unchanged over the previous month's forecast.
Author: Ricardo Aceves, Senior Economist