India: Industrial production growth tumbles in February
April 12, 2019
Annual industrial production growth decelerated to 0.1% in February from a revised 1.4% in January (previously reported: +1.7% year-on-year), starkly undershooting market analysts’ expectations of 2.0% growth.
In terms of sectors, the deceleration was due to a decrease in manufacturing output and slower growth in mining output. On the other hand, the electricity generation sector observed a slight uptick in output growth in February. On a use-based classification, industrial production was weighed on by decreases in the output of capital goods and intermediate goods, and feeble growth in the output of primary, infrastructure and consumer durable goods. On the other hand, output of consumer non-durable goods increased at a healthy pace.
India Industrial Production Forecast
FocusEconomics panelists expect industrial production to increase 5.8% in fiscal year 2018, which is down 0.2 percentage points from last month’s forecast. For fiscal year 2019, the panel expects industrial output to expand 6.0%.
Author: Edward Gardner, Economist