India: Industrial production falls unexpectedly
November 9, 2012
In September, industrial production declined 0.4% over the same month last year, according to the so-called quick estimate for the index of industrial production (IIP). The reading contrasted both the revised 2.3% increase recorded in August (previously reported: +2.7% year-on-year) as well as market expectations of a 2.8% rise. The monthly result was driven by a decline in the important manufacturing sector. On a use-based classification, the monthly drop primarily reflected a sharp fall in capital goods production. As a result of the monthly contraction, the trend continues to point down, with annual average growth in industrial production falling from 0.8% in August to 0.6% in September.