Industrial output contracts for third straight month in December

NEW DELHI Wed Feb 12, 2014 5:57pm IST

A labourer works inside a steel factory on the outskirts of Jammu January 2, 2014. REUTERS/Mukesh Gupta/Files

A labourer works inside a steel factory on the outskirts of Jammu January 2, 2014.

Credit: Reuters/Mukesh Gupta/Files

Related Topics

NEW DELHI (Reuters) - India's industrial production shrunk for the third straight month in December, dragged down by weak investment and consumer demand and pointing to continued sluggishness in Asia's third-largest economy.

Industrial output fell 0.6 percent in December from a year earlier, after contracting a revised 1.3 percent in November, data from the federal statistics ministry showed on Wednesday.

Analysts polled by Reuters had forecast a contraction of 1.0 percent in the industrial output.

The manufacturing sector, which constitutes about 76 percent of industrial production, contracted 1.6 percent from a year earlier.

Capital goods production, a barometer for investments in the economy, fell an annual 3.0 percent in December, compared with a 0.3 percent provisional growth in the previous month.

India last week cut its estimate of annual growth for the current fiscal year ending in March to 4.9 percent from 5 percent because of a contraction in the manufacturing and mining sectors.

The weak output data will do little to help the Congress party-led ruling alliance, which faces an uphill battle in a general election due by May.

(Reporting by Rajesh Kumar Singh; editing by Malini Menon)

FILED UNDER:

Telecom

Reuters Showcase

Insurance Bill

Insurance Bill

Opposition support bolsters prospects for insurance reforms  Full Article 

SBI Share Sale

SBI Share Sale

SBI's up to $2.4 billion share sale likely by end April - sources   Full Article 

Eicher Share Sale

Eicher Share Sale

Truck maker Volvo sells shares in Eicher Motors  Full Article 

Beef Ban

Beef Ban

After beef ban, Hindu groups force abattoirs to close   Full Article 

Monsoon Season

Monsoon Season

Exclusive - India expects better monsoon rains this year  Full Article 

Services Growth

Services Growth

Services growth at eight-month high in Feb - HSBC PMI  Full Article 

'India's Daughter'

'India's Daughter'

Documentary on 2012 Delhi gang rape banned in India  Full Article 

Capex Slashed

Capex Slashed

Cairn India slashes 2015-16 capex on falling crude   Full Article 

Reuters India Mobile

Reuters India Mobile

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