India: Industrial production rebounds in February
April 12, 2016
Industrial production returned to growth in February, after three months of falling output. Industrial production rose 2.0% compared to the same month last year, which contrasted January’s 1.5% fall. The reading surprised market analysts, who had expected a more modest 0.5% expansion.
February’s improvement was driven by broad-based gains across sectors. Manufacturing production rebounded from a 2.8% contraction in January to a 0.7% expansion in February. Mining output gained steam, rising from a 1.5% increase in January to a 5.0% expansion in February. Growth in electricity production accelerated to 9.6% (January: +6.6% year-on-year).
On a use-based classification, the production of basic and intermediate goods picked up pace, while the contraction in capital goods moderated in February. In addition, production of consumer goods accelerated.
Despite the improvement, the trend continued to point downward. Annual average growth in industrial production eased from January’s 2.9% to 2.7%.