India: Industrial production rebounds in July
September 11, 2013
In July, industrial production expanded 2.6% over the same month last year, according to the Quick Estimate of the Index of Industrial Production (IIP). The reading contrasted the 1.8% decrease observed in June and overshot market expectations of a 0.8% contraction.
The expansion was the result of a rebound in manufacturing output (June: -1.7% year-on-year; July: +3.0% yoy) as well as in electricity supply (June: 0.0% yoy; July: +5.2% yoy). In use-based classification terms, production of capital goods showed a notable expansion. The trend improved, with annual average growth in industrial production rising from 1.0% in June to 1.2% in July.
FocusEconomics panelists expect industrial production to increase 3.9% in fiscal year 2013/2014, which is down 0.4 percentage points from last month's forecast. For fiscal year 2014/2015, the panel expects industrial output to expand 5.6%.
Author: Ricardo Aceves, Senior Economist