India's Industrial Output Rebounds In September With 3.1% Growth After August Slump

After a slump in August, India's industrial output rebounded in September led by a surge in manufacturing and a modest pick up in mining and electricity generation.

The Index of Industrial Production grew by 3.1% as compared to a contraction of 0.1% in August, according to data published by the Ministry of Statistics and Programme Implementation on Tuesday.

The three main sectors—mining, manufacturing and electricity—logged a growth of 0.2%, 3.9% and 0.5%, respectively, in September.

Within the manufacturing sector, top three positive contributors for the month are coke and refined petroleum products, whose output grew by 5.3%, followed by base metals which are up by 2.5% and electrical equipment production jumped by 18.7%.

The uptick in IIP comes in the backdrop of India's core sector output also rebounding in September. The combined index of eight core industries rose by 2% in September, according to data released by the Ministry of Commerce & Industry on Oct. 30. This compares to a contraction of 1.6% in August, which had marked the first decline in 42 months.

• Mining output rose by 0.2%.

• Manufacturing output grew by 3.9%.

• Electricity generation rose by 0.5%.

Industrial output, as classified by the end use of goods, showed:

• Primary goods output rose by 1.8%.

• Capital goods output increased by 2.8%.

• Intermediate goods output grew by 4.2%.

• Infrastructure and construction goods output gained 3.3%.

• Consumer durables output rose by 6.5%.

The recovery in India's industrial output comes a month after the IIP turned negative, marking the first slump in 22 months. The deceleration in August was driven by a decline of 4.3% in manufacturing output, and a 3.7% fall in electricity generation.

The output of primary goods, consumer durables and intermediate goods had dropped by 2.6%, 5.2% and 3%, respectively, in August.