India's Industrial Output Contracts In August, A 22-Month Low

India's industrial output contracted in August, a first time in 22 months, led by elevated base and excessive rainfall in parts of the country.

The index of industrial production contracted 0.1%, compared to a growth of 4.7% in July, according to data published by the Ministry of Statistics and Programme Implementation on Friday. This marked the first contraction in the past 22 months.

Earlier, analysts at ICRA estimated that the IIP growth rate would slow down to 1% in August due to a contraction in eight core sectors during the month. Official data released on Sept. 30 showed the core sectors contracted by 1.8% in August—the first decline in 42 months—after growing by 6.1% in July on an annual basis.

Sectoral Estimates (YoY)

• Mining output fell 4.3% in August.

• Manufacturing production rose by 1%.

• Electricity generation dropped 3.7%

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

• Primary goods output declined by 2.6%

• Capital goods output increased by 0.7%

• Intermediate goods output grew by 3%

• Infrastructure and construction goods output gained 1.9%

• Consumer durables output rose by 5.2%

• Consumer non-durables output declined by 4.5%

This is a developing story.