India: Industrial production growth accelerates in December
February 12, 2019
Annual industrial production growth accelerated to 2.4% in December, up from November’s revised 0.3% (previously reported: +0.5% year-on-year). The result overshot market analysts’ expectations of 1.6%.
In terms of industrial sectors, production growth improved in December due to stronger growth in manufacturing output, which represents approximately 80% of total industrial production in India. On the other hand, growth in electricity generation slowed and mining output decreased. On a use-based classification, industrial production in December was supported by strong growth in output of construction goods, in addition to higher production of capital goods, consumer non-durable goods and consumer durable goods. On the flip side, output of primary goods and intermediate goods fell in December.
India Industrial Production Forecast
FocusEconomics panelists expect industrial production to increase 5.9% in fiscal year 2018, which is down 0.3 percentage points from last month’s forecast. For fiscal year 2019, the panel expects industrial output to expand 6.3%.
Author: Edward Gardner, Economist
