Key facts
- India's industrial output grew 6.7% year-on-year in July.
- Mining activity contracted by 0.9% in July.
- Manufacturing output increased by 7.3% and electricity generation by 8.7% in July.
- Output of consumer durables grew 10.5%, while non-durables fell 1% in July.
- Capital goods output rose 16.1% in July.
India's industrial production growth slowed to 6.7% year-on-year in July, a deceleration from the revised 8.8% recorded in June, according to data released on Friday. The slowdown was attributed to a contraction in mining activity, while growth in manufacturing and electricity output also eased. Economists surveyed by Reuters had anticipated a slower growth rate of 6% for July.
Manufacturing output saw a 7.3% increase in July, down from a revised 9.5% in the previous month. Electricity generation rose by 8.7% year-on-year, a decrease from the revised 11.3% increase in June. Mining activity experienced a decline of 0.9% in July, contrasting with a revised growth of 1.6% in June.
In terms of specific sectors, the output of consumer durables, which includes items like cars and phones, grew by 10.5% year-on-year in July, a slight increase from the revised 10.3% in June. Conversely, the output of consumer non-durables, such as food items and toiletries, fell by 1% year-on-year in July, a significant shift from the revised 5.6% rise in the prior month. Capital goods output increased by 16.1% year-on-year in July, down from a revised 17.9% rise in June.
For the April-July period, industrial output grew by 6.3%, an improvement compared to the 4% increase observed a year earlier. The government had previously shifted its factory output calculation method in May, moving from wholesale prices to producer prices.