India: Industrial output growth accelerates in October
December 10, 2010
In October, industrial output grew 10.8% over the same month last year, according to the so-called quick estimate for the index of industrial production. The reading more than doubled the 4.4% increase in September and overshot market expectations, which had industrial output rising 8.5%. The acceleration over the previous month was broad-based. However growth in the manufacturing sector, which accounts for nearly three quarters of total industrial output, was the key driver, jumping from a 4.6% expansion in September to an 11.3% increase in October. Electricity production also accelerated (September: +1.7% year-on-year; October: +8.8% yoy), and mining output picked up from a 4.9% to a 6.5% expansion in October. On a use-based classification, the monthly acceleration was mostly driven by a remarkable rebound in the production of capital goods (September: -4.1% yoy; October: +22.0% yoy), as well as for a surge in durable consumer goods output (September: +10.9% yoy; October: +31.0% yoy). Despite the strong figures, annual average growth in industrial production remained unchanged from the increase registered in September, expanding 12.4%.