India: Industrial production rebounds in May
July 12, 2016
Industrial production rebounded in May, recording the largest expansion in three-months. Industrial production rose 1.2% compared to the same month last year, which contrasted April’s 1.3% decrease. The print surprised market analysts, who had expected a 0.8% decline.
May’s expansion was driven by a rebound in manufacturing output, which swung from a -3.7% drop in April to 0.7% growth. In addition, mining output picked up pace expanding 1.3% (April: +1.1% year-on-year. However, electricity production lost steam with growth falling to 4.7% in May from April’s 14.6%.
On a use-based classification, the contraction in capital goods abated in May and consumer goods production returned to growth. In addition, intermediate goods production gained steam.
Despite the result, the trend continued to point downward. Annual average growth in industrial production eased from April’s 2.2% to 2.1%, which represented a 16-month low.