India: Industrial production grows at fastest rate in over one year in November
January 12, 2017
Industrial production in India surged in November, growing at the fastest pace since October 2015. Industrial output expanded 5.7% compared to the same month of 2015, which contrasted October’s 1.8% rise. The print notably overshot market analysts’ expectations of a subdued 1.5% expansion, partly as a result of the government’s demonetization program.
November’s result was driven chiefly by a rebound in manufacturing output, which increased 5.5% annually, contrasting the 2.4% contraction in October. In addition, electricity output grew 8.9% after posting weaker growth of 1.1% in October, while mining output expanded 3.9% (October: -0.7% year-on-year).
On a use-based classification, the production of capital goods increased notably. Consumer goods and basic output also picked up pace, while the production of intermediate goods grew steadily.
As a result of the positive reading, the trend pointed upwards after the steady decline seen in past months. Annual average variation in industrial production swung from minus 0.5% in October to plus 0.3% in November.