India: Industrial production growth slumps in November amid fewer working days
January 11, 2019
Annual industrial production growth slowed to 0.5% in November, down from October’s revised 8.4% (previously reported: +8.1% year-on-year). This outturn undershot market analysts’ expectations of 3.6% growth and was largely due to fewer working days than in the same month a year earlier owing to Diwali festivities.
In terms of industrial sectors, production growth slowed primarily due to a contraction in manufacturing sector output, which represents approximately 80% of total industrial production in India. In addition, output growth in the electricity and mining sectors slowed in November. On a use-based classification, industrial production in November was weighed on by falling output of intermediate, capital, consumer durable and consumer non-durable goods. Output growth of primary and infrastructure goods, meanwhile, slowed in November.
Author: Edward Gardner, Economist