India’s Industrial Output Growth Slows Further In October
The index of industrial production slowed to 2.2 percent in October.
India’s factory output in October hit a three-month low due to a slowdown in mining and manufacturing activity, coupled with the decline in the output of consumer durables.
Industrial production in October rose 2.2 percent compared to a year ago, data from the Central Statistics Office showed. This was slower than the revised 4.1 percent growth seen in September. A Bloomberg poll of economists had expected industrial production to grow at 2.9 percent on a year-on-year basis.
“The moderation is not a good sign as it may suggest that the healthier growth of the previous two months may largely be on account of restocking activity,” rating agency Crisil said in a report.
The use-based classification of industrial output showed that production of primary goods was 2.5 percent, while capital goods production grew 6.8 percent. The category of infrastructure and construction goods saw a 5.2 percent increase in output.
Growth in pharmaceuticals, medicinal chemical and botanical products was the highest contributor at 23 percent, followed by a 12.8 percent growth rate in manufacture of motor vehicles, trailers and semi-trailers in October, compared to a year-ago period.
Gold jewellery, tobacco products, rubber and plastic products saw negative growth.
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Other Highlights
- Mining activity growth slowed down sharply to 0.2 percent, from the 7.9 percent rise seen in September.
- Manufacturing activity was also subdued growing at 2.5 percent over last year, from a 3.4 percent in September.
- Electricity generation grew 3.2 percent over last year, compared to a 3.4 percent rise in September.
Activity in the eight core industries, which comprise about 40 of the index, had risen 4.7 percent in October.