India’s Nov industrial output growth slows to 2.4% y/y

NEW DELHI (Reuters) – India’s industrial output rose 2.4% year on year in November, its weakest pace in eight months, data from the Ministry of Statistics showed on Friday, after manufacturing growth slowed.

The figure lags a 4% growth forecast by analysts in a Reuters poll, and a 7.6% output same month last year.

Output growth in November “crashed”, slowing sharply from 11.6% in October, due to a base effect that reversed due to a different festival calendar this year, Aditi Nayar, an economist at ICRA said.

India’s months long festive season that spurs inventory building typically peaks during Diwali – the festival of lights. It was celebrated on Nov. 12 this year instead of October last year.

Manufacturing output in November rose 1.2% year-on-year, sharply lower than 10.2% growth the previous month.

Electricity generation was up 5.8% and mining activities increased by 6.8% in November, the data showed.

Industrial output in the first eight months of the fiscal year that started in April was up 6.4% from the same period a year ago.

(Reporting by Shivangi Acharya, Editing by David Goodman and Barbara Lewis)