India: Industrial production loses steam in May
July 10, 2015
In May, industrial production expanded 2.7% compared to the same month last year. The reading was below April’s revised 3.4% increase (previously reported: +4.1% year-on-year), and undershot the 3.6% expansion the market had expected.
The deceleration in May was driven by a slowdown in manufacturing. Manufacturing production rose 2.2% over the same month last year, which was below April’s 4.2% rise. In contrast, electricity rebounded to an expansion and mining picked up steam, growing 2.8% in May, which was above April’s meagre 0.2% growth.
On a use-based classification, the figure was driven by an almost across-the-board deterioration. Production of capital, intermediate and consumer goods all deteriorated compared to the previous month.
Corroborating the worse performance in industrial production, the trend deteriorated. Annual average growth in industrial production fell from 2.8% in April to 2.6% in May.