IIP: India's Industrial Output Expands 7.1% In November To Five-Month High

India’s factory output saw a sharp rebound in November to rise to a five-month high after having contracted the previous month.

The Index of Industrial Production expanded 7.1% in November, according to data published by the Ministry of Statistics and Programme Implementation on Thursday. The index had contracted 4% in October.

The industrial output rose by 6% on a month-on-month basis in November.

Twenty-eight economists polled by Bloomberg had forecast November IIP growth at 2.8%.

Output recovery was visible partly on account of a low base, but also some rebound in sequential activity levels, primarily in manufacturing, said Rahul Bajoria, chief economist at Barclays.

The industrial production data indicates that while the global manufacturing slowdown is also being felt in India, there are still some domestic factors supporting the activity recovery, as evident from strong growth in mining and electricity production, he said.

• Mining output rose 9.7% compared to a rise of 2.5% in October.

• Manufacturing output expanded 6.1%, after a contraction of 5.6% over the previous month.

• Electricity generation rose 12.7% compared to a growth of 1.2% in October.

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

• Primary goods output rose 4.7% compared to a rise of 2% in October.

• Capital goods output grew 20.7% compared to a contraction of 2.3% in the previous month.

• Intermediate goods output rose 3%, compared to a fall of 2.8% in the preceding month.

• Infrastructure and construction goods output rose 12.8%, compared to a rise of 1% in October.

• Consumer durables output rose by 5.1% after declining 15.3% in October.

• Consumer non-durables output rose by 8.9%, compared to a decline of 13.4% in October.