India: Industrial production plummets in October
December 12, 2016
Industrial production in India plummeted in October, falling at the fastest pace in three months. Industrial output decreased 1.9% compared to the same month last year, which contrasted September’s 0.7% rise. The print undershot market analysts’ expectations of a 1.1% expansion.
October’s result was driven chiefly by a decline in manufacturing output, which fell 2.4% annually, contrasting the 0.9% expansion in September. In addition, electricity output grew 1.1% after posting stronger growth of 2.4% in September. However, the fall in mining moderated to a 2.4% decrease (September: -3.2% year-on-year).
On a use-based classification, the production of capital goods fell notably. Consumer goods also declined, while production of basic and intermediate goods picked up pace.
The trend continued to point downward. Annual average variation in industrial production swung from plus 0.5% in September to minus 0.5% in October, a multi-year low.