India: Industrial production slows notably in March
May 12, 2016
Industrial production lost steam in March, barely eking out growth. Industrial production rose 0.1% compared to the same month last year, which followed February’s 2.0% expansion. The reading surprised market analysts, who had expected a more robust 2.5% expansion.
March’s slowdown was driven by contractions in mining and manufacturing output. Manufacturing production swung from a 0.7% expansion in February to a 1.2% fall in March. Mining output also dropped, contracting 0.1% (February: +5.1% year-on-year). However, electricity production accelerated to an 11.3% increase (February: +9.6% yoy).
On a use-based classification, the production of basic and intermediate goods lost steam, while the contraction in capital goods intensified in March. In addition, production of consumer goods decelerated.
As a result, the trend continued to point downward. Annual average growth in industrial production eased from February’s 2.7% to 2.5%.