India: Industrial production growth slows in July
Annual industrial production growth decelerated to 6.6% in July from June’s revised 6.9% (previously reported: +7.0% year-on-year), slightly overshooting market analysts’ expectations of 6.5%.
There was a broad-based increase in production across industrial sectors in July. Solid output expansions in the manufacturing sector—which represents nearly 80% of total industrial production—and the electricity sector underpinned growth, whilst a tepid mining output increase weighed on the overall result. In the manufacturing sector, 20 out of the 23 sub-sectors recorded expansions in July, with the furniture; computer, electronic and optical products; and tobacco products sub-sectors recording the fastest rates of growth.
On a use-based classification, industrial production in July was supported by a double-digit output expansion of consumer durable goods. Production of infrastructure, primary and consumer non-durable goods also increased at a good pace in July. Dragging on the headline, however, were very humble readings for intermediate and capital goods.