India: Industrial production hits multi-year high in August
October 12, 2015
In August, industrial production expanded 6.4% compared to the same month last year. The reading was above July’s revised 4.1% increase (previously reported: +4.2% year-on-year) and marked the fastest growth since October 2012. In addition, August’s result overshot market analysts’ expectations of a 5.0% expansion.
August’s upturn was driven by a broad-based improved performance across sectors. Manufacturing production picked up from a 4.6% increase over the same month last year to a 6.9% rise in August—the strongest since October 2012. In addition, mining production increased 3.8% (July: +0.9% yoy) and electricity production accelerated to a 5.6% expansions (July: +3.5% yoy).
On a use-based classification, the figure was driven by a rise in the production of consumer, intermediate and capital goods. However, a weaker performance was recorded in basic goods.
As a result of the strong performance in industrial production, the trend improved in August. Annual average growth in industrial production rose from July’s 2.8% to 3.3% in August.