India: Growth in industrial output slows to a nine-month low
July 12, 2011
In May, industrial production rose 5.6% over the same month last year, according to the so-called quick estimate for the index of industrial production (IIP). The figure came in below the 5.8% expansion recorded in April (previously reported: +6.3% year-on-year), marking the slowest pace of expansion in nine months. In addition, the reading undershot market expectations that had industrial output rising 8.5%. The slower pace of expansion was the result of a deceleration in the manufacturing sector, which expanded 5.6% (April: +6.3% yoy). In contrast, growth in mining as well as in electricity generation picked up from last month. On a use-based classification, the moderation was underpinned by a slowdown in the production of capital and intermediate goods. In contrast, the production of consumer goods, particularly non-durables accelerated. Owing to the relatively weak print, the trend in industrial production continued to fall, down from 7.6% in April to 7.4%.