(Bloomberg) -- India’s factory output shrank to the lowest level in eight years, as a sharp fall in capital goods production underlined weak demand in Asia’s third-largest economy.
The index of industrial production fell 4.3% in September, data released by the Ministry of Statistics showed Monday. That compares with an estimate for a 2.5% contraction, and is the lowest since October 2011.
Key Insights
- Capital goods output dropped 20.7% from a year ago, while consumer durables fell 9.9%
- The second straight month of decline in factory output caps yet another quarter of subdued activity, belying expectations of a quick recovery after economic growth slipped to a six-year low of 5% in the April-June period
- Gross domestic product data for the three months to September is due Nov. 29 and will probably show a mild recovery in growth to 5.5%. Economists, however, say that may be more because of a favorable base effect
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- Infrastructure and construction goods output fell 6.4%
- To read the full statement, click here
(Updates with chart, and details on decline streak under Key Insights)
--With assistance from Karthikeyan Sundaram and Atul Prakash.
To contact the reporter on this story: Anirban Nag in Mumbai at anag8@bloomberg.net
To contact the editors responsible for this story: Nasreen Seria at nseria@bloomberg.net, Jeanette Rodrigues, Karthikeyan Sundaram
©2019 Bloomberg L.P.
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