India: Industrial production weakens in April
June 11, 2013
In April, industrial production expanded 2.0% over the same month last year, according to the so-called quick estimate for the index of industrial production (IIP). The print marks a fourth consecutive expansion but represents a deceleration compared to the revised 3.4% increase registered in March (previously reported: +2.5% year-on-year). The result was below market expectations that had industrial output growing 2.4%.
The monthly slowdown reflects slower growth in manufacturing output - which accounts for over three quarters of industrial production - (March: +4.2% yoy; March: +2.8% yoy) as well as in production of electricity, which grew only 0.7% in April, well below the 3.5% expansion recorded in March.
As a result of the monthly increase, the trend improved, with annual average growth in industrial production rising from 1.1% in March to 1.4% in April.
FocusEconomics panellists expect industrial production to increase 4.6% in the fiscal year 2013/14, which is down 0.1 percentage points from last month's forecast. For the fiscal year 2014/15, the panel anticipates industrial output to expand 6.3%.
Author: Ricardo Aceves, Senior Economist