India: Industrial production grows at fastest rate in over a year in November
The print notably overshot market analysts’ expectations of a subdued 1.5% expansion, partly as a result of the government’s demonetization program.
November’s result was driven chiefly by a rebound in manufacturing output, which increased 5.5% annually, contrasting the 2.4% contraction in October.
In addition, electricity output grew 8.9% after posting weaker growth of 1.1% in October, while mining output expanded 3.9% (October: -0.7% year-on-year).
On a use-based classification, the production of capital goods increased notably. Consumer goods and basic output also picked up pace, while the production of intermediate goods grew steadily.
As a result of the positive reading, the trend pointed upwards after the steady decline seen in past months. Annual average variation in industrial production swung from minus 0.5% in October to plus 0.3% in November.
FocusEconomics panelists expect industrial production to increase 5.2% in fiscal year 2016, which is down 0.3 percentage points from last month’s forecast.
For fiscal year 2017, the panel expects industrial output to expand 6.1%. ■