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

School Shooting

School Shooting

Two killed, four wounded in Washington state school shooting.  Full Article 

Sundar Pichai Elevated

Sundar Pichai Elevated

Google's Pichai to oversee major products and services.  Full Article 

Need For Reforms

Need For Reforms

Euro zone risks "relapse into recession" without structural reforms - Draghi.  Full Article 

Diwali Sales

Diwali Sales

Gold sales jump about 20 pct for Diwali - trade body  Full Article 

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Wal-Mart India

Wal-Mart India

Murali Lanka appointed as Wal-Mart India operations chief  Full Article 

Health Of Lenders

Health Of Lenders

25 European banks set to fail health checks - sources.  Full Article 

Special Report

Special Report

Why Madrid's poor fear Goldman Sachs and Blackstone  Full Article 

India Insight

India Insight

Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw”  Full Article 

Reuters India Mobile

Reuters India Mobile

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