India: Industrial production rebounds in November
January 12, 2015
In November, industrial production expanded 3.8% compared to the same month of the previous year, recovering part of the ground lost in October, when output decreased 4.2%. The reading also overshot the 2.3% expansion the market had expected.
The strong increase in November stemmed from a rebound in manufacturing production, which increased 3.0% annually (October: -7.4% year-on-year) as well as due to healthy growth in mining and quarrying along with electricity generation.
On a use-based classification, the figure was mainly driven by a strong expansion in the production of capital goods and intermediate goods. Consumer goods continued to contract in December, although at a slower rate than in the previous month.
As a result of the improvement, the trend recovered. Annual average growth in industrial production rose from 0.9% in October to 1.4% in November.
Author: Ricardo Aceves, Senior Economist