India: Industrial production falls in December as manufacturing output drops
February 10, 2017
Industrial production slumped in December, a month after recording its strongest gains in more than a year. Industrial output contracted 0.4% compared to the same month of 2015, which contrasted with November’s substantial 5.7% increase.
December’s result was driven chiefly by a drop in manufacturing output, which decreased 2.0% annually, contrasting the 5.5% expansion seen in November. In addition, electricity output grew 6.3% following strong growth of 8.9% in November, while mining output expanded 5.2% (November: +3.7% year-on-year).
On a use-based classification, the production of basic goods was the only bright spot, notably increasing in December. The production of both consumer and capital goods fell remarkably, while intermediate goods production also dropped.
Annual average growth in industrial production remained unchanged at 0.3%, putting the brakes on a more substantial recovery which followed months of steady declines that had bottomed out in October.
Author: Christopher Thomas, Economist