- India's industrial production growth slowed to 6.7% year-on-year in July
- July growth surpassed market estimate of 6%, indicating strong industrial activity
- June IIP growth was revised sharply upward to 8.8% from 7.3% earlier reported
India's industrial production growth moderated to 6.7% year-on-year in July but came in above the market estimate of 6%, according to data released on Friday. The latest reading marks a slowdown from the earlier reported June growth of 7.3%. However, the June IIP figure has now been revised sharply upwards to 8.8% from 7.3% reported earlier.
The July data indicates that industrial activity continued to expand at a healthy pace, although the pace of growth moderated from the revised June level. The sharp upward revision in June's IIP growth to 8.8% also indicates that the industrial momentum entering the July quarter was stronger than initially estimated.
Manufacturing which carries the largest weight in the IIP, remained the key driver of industrial production in July, with output rising 7.3% year-on-year. It stood at 7.8% in the last month. Mining production grew 0.9%, while water supply output increased 7.4% during the month. Mining production in June stood at 1%, while water supply output increased 6.1%. The sharp difference between manufacturing and mining growth highlights the continued reliance of overall industrial activity on the manufacturing sector.
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Capital goods production recorded robust growth of 16.1% year-on-year in July, signalling continued strength in investment-related activity. In comparison in June it stood at 14.2%.
Infrastructure goods output increased 6.9%, while intermediate goods production rose 10%. Infrastructure and construction goods output rose 7.5% in the last month.
Consumer durables production grew 10.5% year-on-year, indicating healthy momentum in demand for consumer-oriented products. However, consumer non-durables recorded much weaker growth of 1% during the month. Primary goods production increased 4.1% year-on-year in July.
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