India's industrial activity lost steam in August as the country faces headwinds from rising fuel prices, higher interest rates and deleveraging by Indian banks.
The Index of Industrial Production rose 4.3 percent over last year in August, compared with a revised 6.5 percent growth in July, data released by the Ministry of Statistics and Programme Implementation showed. A Bloomberg poll of economists had projected a 3.8 percent growth. IIP growth was at 4.8 percent in August last year.
- Mining output fell 0.4 percent year-on-year compared with a 9.3 percent rise in the same month last year.
- Manufacturing output increased 4.6 percent compared with 3.8 percent growth last year.
- Electricity generation growth stood at 7.8 percent compared to 8.3 percent last year.
Output in 16 of the 23 industry groups in the manufacturing sector grew in August, with furniture, wearing apparel and wood and wood products showing the highest growth. On the other hand, printing and reproduction of recorded media, tobbacco products and computer, electronics and optical products showed the highest decline.
The use-based classification showed that primary goods output rose 2.6 percent, while capital goods output increased 5 percent. Output of intermediate goods grew 2.4 percent.
- Infrastructure goods production rose 7.8 percent
- Consumer durable output rose 5.2 percent
- Non-consumer durables grew 6.3 percent over last year.
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