IIP slumps 1.8 pct, shrinks for first time in four months

NEW DELHI Thu Dec 12, 2013 6:05pm IST

1 of 2. An employee works inside a electrical equipments manufacturing unit in New Delhi December 2, 2013.

Credit: Reuters/Anindito Mukherjee

NEW DELHI (Reuters) - India's industrial production contracted for the first time in four months in October in a sign that economic recovery remains fragile, government data showed on Thursday.

Industrial output slumped 1.8 percent in October after growing 2 percent in September. Analysts polled by Reuters had predicted industrial output would contract by 1.2 percent for the month.

The manufacturing sector, which constitutes about 76 percent of industrial production, contracted 2 percent from a year earlier, the statistics ministry said.

Capital goods production, a barometer for investments in the economy, grew 2.3 percent in October from a year earlier.

Industrial activity was hit as the infrastructure output, which includes coal, electricity, cement, crude oil and steel factories contracted.

Output in those industries, which account for more than one-third of overall factory production, fell 0.6 percent annually compared with a reading of 8 percent in September, data released earlier showed.

(Reporting by Manoj Kumar; Editing by Frank Jack Daniel)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Moody's on Inflation

Moody's on Inflation

Persistent inflation hurting India's sovereign ratings - Moody's  Full Article 

Carmichael Project

Carmichael Project

Adani buys Australia coal mine royalty rights from Linc for $145 million  Full Article 

GDP Preview

GDP Preview

Economy likely grew faster in June quarter: Reuters poll.  Full Article 

India-Japan Meet

India-Japan Meet

Modi eyes breakthrough nuclear pact on Japan trip   Full Article 

Monetary Policy

Monetary Policy

BofA says RBI may cut rates by 75-100 bps starting early 2015  Full Article 

Road to IPO

Road to IPO

Mega-IPO to rekindle the 'bromance' behind Alibaba's rise  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage