India’s industrial production growth less than estimates: Morgan Stanley

India’s industrial production (IP) growth moderated to four month low of 2.4 per cent year-on-year (YoY) in July, from 12.3 per cent YoY in June, partly due to base effect, said Morgan Stanley in a report.

This was below its four per cent and consensus 4.2 per cent estimates, said Morgan Stanley.

On a seasonally adjusted sequential basis, IP contracted by 7.1 per cent month on month (MoM), versus growth of 2.5 per cent in June.

According to the report, although growth slowed across the board, mining was the only sector to contract, by 3.3 per cent.

Manufacturing activity growth slowed to 3.2 per cent, and electricity production to 2.3 per cent.

On a YoY basis, growth decelerated for all sectors, with consumer non-durables declining by two per cent.

Capital goods recorded the highest growth at 5.8 per cent.

The high-frequency data depicted continued divergence in domestic versus external demand, with the global slowdown impairing trade, financial conditions and business sentiment, said Morgan Stanley.

–IANS

vj/vd

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor