India’s August industrial output rises at fastest pace in more than a year

By Nikunj Ohri and Sarita Chaganti Singh

NEW DELHI (Reuters) -India’s industrial output grew in August at its fastest pace in more than a year on strong manufacturing, electricity and mining activity, Ministry of Statistics data showed on Thursday.

Industrial production rose 10.3%, while for July it was revised up to 6% from 5.7%. Analysts in a Reuters poll had forecast an August reading of 9%.

Madan Sabnavis, an economist at Bank of Baroda, said a factor in the high August figure was the base effect, with output having fallen 0.7% a year earlier.

Manufacturing output rose 9.3%, electricity generation was up 15.3% and mining activities increased 12.3%, the data showed.

Consumer goods output showed growth for the first time in three months, rising 5.7% as industries started building inventory for the festival season.

Infrastructure goods and capital goods showed year growth of 14.9% and 12.6%, respectively, the data showed.

Industrial output in the first five months of the fiscal year that started in April was up 6.1% from the same period a year ago.

“The next two months should ideally see sustained growth if rural demand revives,” Sabnavis said.

(Reporting by Nikunj Ohri and Sarita Singh; Editing by Andrew Cawthorne, Alex Richardson and John Stonestreet)