India: Industrial production growth slows in August
October 12, 2018
Annual industrial production increased 4.3% in August, down from July’s revised 6.5% (previously reported: +6.6% year-on-year) but above market analysts’ expectations of 3.8% growth.
There was a mixed performance across industrial sectors in August. Solid output expansions in the manufacturing sector—which represents nearly 80% of total industrial production—and the electricity sector underpinned growth, whilst a contraction in mining output weighed on the overall result. In the manufacturing sector, 16 out of the 23 sub-sectors recorded production expansions in August, with the furniture; apparel; wood and cork products; and motor vehicles, trailers and semi-trailers sub-sectors recording the fastest rates of growth.
On a use-based classification, industrial production in August was supported by strong output growth of infrastructure and consumer non-durable goods. Meanwhile, production of consumer durable goods and capital goods increased at robust paces, while output of primary and intermediate goods grew slowly.
India Industrial Production Forecast
FocusEconomics panelists expect industrial production to increase 6.1% in fiscal year 2018, which is up 0.1 percentage points from last month’s forecast. For fiscal year 2019, the panel expects industrial output to expand 6.3%.
Author: Edward Gardner, Economist