India: Industrial production in June tallies third consecutive strong expansion
August 12, 2014
Industrial production increased 3.4% over the same month last year in June, according to the Quick Estimate of the Index of Industrial Production (IIP). The reading marked a deceleration over the 5.0% rise tallied in May and fell short of market expectations of a 5.6% expansion.
The annual expansion came on the back of positive figures in all the three sectors measured by the index. Mining accelerated from a 2.9% expansion in May to a 4.3% rise, marking the strongest expansion since December 2010. Conversely, manufacturing decelerated from the 5.1% rise seen in May to a 1.8% increase in June. Electricity surged 15.7%, which was up from the 6.7% rise seen in June.
Among the categories that measure the type of goods produced, the production of capital goods registered the strongest expansion; surging 23.0%, up from the 4.3% rise seen in May. Basic goods and intermediate goods also expanded in June, although they tallied decelerations with respect to May. On the contrary, consumer goods’ output registered a strong 10.0% contraction, mainly due to the drop in production of durable goods, which plummeted 23.4%.