India: Industrial production expands for second consecutive month
April 12, 2013
In February, industrial production expanded 0.6% over the same month last year, according to the so-called quick estimate for the index of industrial production (IIP). The print represents a second consecutive increase (January: +2.4% year-on-year) and defied market expectations that had industrial output declining 1.0%.
The monthly expansion was mainly supported by an increase in manufacturing output - which accounts for over three quarters of industrial production (February: +2.2% yoy; January: +2.5% yoy). On a use-based classification, production of capital goods improved notably compared to the previous month.
Despite the February increase, the trend continues its almost uninterrupted downward trajectory in place since November 2012, with annual average growth in industrial production falling from 0.9% in January to 0.6% in February.
FocusEconomics panellists expect industrial production to increase 4.7% in the fiscal year 2013/14, which is down 0.3 percentage points from last month's forecast. For the fiscal year 2014/15, the panel anticipates industrial output to expand 5.9%.
Author: Ricardo Aceves, Senior Economist