India: Industrial production picks up steam, expands at multi-year high
December 14, 2015
In October, industrial production expanded a notable 9.8% compared to the same month last year. The reading was above September’s revised 3.8% increase (previously reported: +3.6% year-on-year) and marked the best result since October 2010. In addition, October’s result overshot market analysts’ expectations of a 7.8% expansion.
October’s acceleration was driven by higher growth in the manufacturing and mining sectors. Manufacturing production grew at the fastest pace since June 2011, expanding 10.6% (September: +2.9% yoy). In addition, mining production picked up from 3.0% growth in September to 4.7% in October. However, electricity production moderated, after recording its best result in almost a year in September, decelerating to a 9.0% expansion (September: +11.4% yoy).
On a use-based classification, the improvement was driven by stronger growth in the production of capital, intermediate and consumer goods. However, basic goods lost steam in October.
As a result, the trend improved in October. Annual average growth in industrial production picked up from September’s 3.3% to 4.4% in October.