India: Industrial production rebounds in May
May 12, 2012
In May, industrial production expanded 2.4% over the same month last year, according to the so-called quick estimate for the index of industrial production (IIP). The reading contrasted the revised 0.9% decline recorded in April (previously reported: +0.1% year-on-year) and overshot market expectations of a 1.8% rise. The monthly figure primarily reflected a bounce in the manufacturing sector, which accounts for over three quarters of total industrial output. On a use-based classification, the monthly reading mainly reflected faster growth in consumer as well as in intermediate goods production. As a result of the weak monthly expansion, the trend continues to point downwards, with annual average growth in industrial production falling from 2.5% in April to 2.2%.