India: Industrial production rebounds in April
June 12, 2014
Industrial production rebounded and expanded 3.4% over the same month last year in April according to the Quick Estimate of the Index of Industrial Production (IIP). The reading contrasted the 0.5% contraction tallied in March and exceed market expectations of a 1.9% expansion.
The expansion was driven by an across-the-board improvement in the three sub-categories that comprise the IIP. Electricity rose 11.9%, up from the 5.4% tallied in March. Manufacturing output rebounded from March’s 1.3% contraction to a 2.6% expansion in April. Mining also expanded to 1.2%, which was up from the 0.3% increase seen in March.
Among the categories that measure the type of goods produced, April saw a strong rebound in the production of capital goods, which expanded 15.7%, contrasting the 11.6% decline seen in March. In addition, both production of basic goods and intermediate goods improved in April, expanding 6.8% and 4.4% respectively. The only category that deteriorated was production of consumer goods, which contracted 5.1% in April.