India: Industrial production picks up pace in June
August 12, 2015
In June, industrial production expanded 3.8% compared to the same month last year. The reading was above May’s revised 2.5% increase (previously reported: +2.7% year-on-year), and overshot the 3.5% expansion that market analysts had expected.
June’s acceleration was driven by stronger manufacturing growth. Manufacturing production rose 4.6% over the same month last year, picking up from May’s 2.0% rise. In contrast, electricity production slowed from May’s 6.0% expansion to 1.3% growth in June and mining swung from a 2.3% rise in May to a 0.3% contraction in June.
On a use-based classification, the figure was driven by an improvement in consumer goods, which rebounded from May’s contraction. Production of capital, intermediate and basic goods all deteriorated compared to the previous month.
Despite the improved performance in industrial production, the trend remained unchanged. Annual average growth in industrial production was stable in June at May’s 2.5%.