IIP: India's Industrial Output Expands At 16-Month High Of 11.7% In October
The Index of Industrial Production grew 11.7% in October, as compared with a revised growth of 6.2% in September.
India's industrial output expanded at the fastest pace in 16 months, supported by momentum in mining and manufacturing.
The Index of Industrial Production grew 11.7% in October, as compared with a revised growth of 6.2% in September, according to data published by the Ministry of Statistics and Programme Implementation on Tuesday.
Economists polled by Bloomberg had forecast October IIP growth at 10.4%.
On a month-on-month basis, the index rose by 1.8%.
Sectoral Estimates (YoY)
Mining output grew by 13.1%.
Manufacturing output expanded by 10.4%.
Electricity generation rose by 20.4%.
Industrial output, as classified by the end use of goods, showed:
Primary goods output rose 11.4%.
Capital goods output grew 22.6%.
Intermediate goods output rose 9.7%.
Infrastructure and construction goods output rose 11.3%.
Consumer durables output rose 15.9%.
Consumer non-durables output grew 8.6%.
Favourable Base Effect
Barclays India said in a note that the IIP growth was helped by favourable base effects, adding 3.6 percentage points to the headline in October. "Faster growth in capital goods categories suggests a pickup in industrial investment," it said.
Festive demand in October and November possibly spurred production, leading to strong growth in consumer durables and non-durables, the bank said.
CareEdge Ratings flagged headwinds for consumption, citing inflationary pressures, lower Kharif production and uncertain prospects for Rabi output. "Additionally, given the weak global demand outlook, the trajectory of industrial activity hinges on a durable consumption recovery," it said.
