India Industrial Production Growth Slows In August

(RTTNews) - India's industrial output growth eased slightly in August after a spike in July, and growth was led by a strong performance in the mining sector and production of infrastructure goods, preliminary data from the statistical ministry showed on Monday.

The industrial production index rose 4.0 percent year-on-year, which was far less than the 5 percent increase economists had expected.

The pace of growth slowed from 4.3 percent in July, which was revised from the 3.5 percent initially estimated, and was the strongest since January. In June, industrial production rose 1.5 percent.

A strong rebound in the mining output drove the industrial production growth in August. Mining output grew for the first time in five months in August, surging 6.0 percent and partially reversed a 7.2 percent slump logged in July.

Manufacturing output rose 3.8 percent, slowing from the 6 percent increase in the previous month. Within the factory sector, manufacture of basic metals surged 12.2 percent and that of motor vehicles, trailers and semi-trailers grew 9.8 percent in August.

Production of coke and refined petroleum products was 5.4 percent higher. Electricity output grew 4.1 percent after a 3.7 percent rise in July.

On a use-based classification, production of primary good grew 5.2 percent and capital goods output was 4.4 percent higher. Intermediate goods grew 5.0 percent and there was a 10.6 percent jump in infrastructure/construction goods.

Consumer durables output rose 3.5 percent, while production of consumer non-durables decreased 6.3 percent. Results of the latest S&P Global purchasing managers' survey, released last week, showed that the manufacturing sector growth slowed in September amid weaker demand for exports and cost pressures as the massive trade tariffs imposed by the U.S. cause high uncertainty.

The Reserve Bank of India is due to announce the latest interest rate decision on Wednesday. The central bank is widely expected to leave interest rates unchanged to support an economy facing a highly uncertain trade environment.