India IIP Data: Industrial Production Grows More Than Estimated At 2% 

India’s industrial production rebounded after a month of contraction even as the economy faces fresh headwinds from the coronavirus outbreak.

The Index of Industrial Production rose 2 percent in January over a year earlier, according to data from the Ministry of Statistics & Programme Implementation. Thirty-five economists polled by Bloomberg had forecast January IIP growth at 0.5 percent. Factory output growth for December was revised to 0.7 percent from a contraction of 0.3 percent earlier.

Fluctuations in industrial activity continue to throw up mixed signals of a fragile economic recovery from the worst slump in a decade. And fresh concerns have emerged from the spread of the novel coronavirus that has disrupted supply chains and hurt demand globally.

Sectoral Estimates

Of the 23 industry groups in the manufacturing sector, 11 saw a rise in output in January. Both mining activity and electricity generation also grew.

• Manufacturing output growth stood at 1.5 percent in January compared with a contraction of 1.2 percent in December.
• Mining output grew 4.4 percent compared with 5.4 percent in the previous month.
• Electricity generation rose 3.1 percent after a contraction of 0.1 percent in December.

Industrial output as classified by the end-use of goods indicated another contraction in capital goods and infrastructure and construction goods.

• Primary goods output growth was at 1.8 percent in January compared with 2.2 percent in December.
• Capital goods output fell 4.3 percent after declined 18.2 percent in the previous month.
• Intermediate goods output grew 15.8 percent after rising 12.4 percent earlier.
• Infrastructure and construction goods output fell 2.2 percent after contracting 1.8 percent.
• Growth in consumer durables output fell 4 percent compared with a contraction of 6.7 percent.
• Growth in consumer non-durables output fell 0.1 percent compared with a contraction of 3.7 percent in December.