India recorded a 7.3% year-on-year increase in industrial output for June, official data showed on Tuesday, with manufacturing activity and electricity production cited as key contributors to the rise.
Economists surveyed ahead of the release had expected industrial output to expand 5.7% in June, compared with a revised 5.0% growth in May. The government also altered its methodology in May, moving from wholesale prices to producer prices for the calculation of factory output, a change that affects month-to-month comparability of manufacturing data.
Sector breakdown and headline figures
- Manufacturing: Output rose 7.8% year-on-year in June, following a revised 5.2% increase in May.
- Electricity generation: Production climbed 10.6% year-on-year in June, compared with a revised 10.3% rise in May.
- Mining: Activity increased 1.0% year-on-year in June, after a revised 1.4% decline in May.
- Consumer durables: Output of goods such as cars and phones grew 7.7% year-on-year in June, slightly lower than the revised 8.0% rise in May.
- Capital goods: Output expanded 14.2% year-on-year in June, versus a revised 15.5% increase in May.
- Quarterly performance: Industrial output for April-June rose 5.8%, compared with a 3.4% increase in the same quarter a year earlier.
The June figures show a marked acceleration in manufacturing compared with the prior month and a continued expansion in electricity generation. Mining moved back into positive territory after a revised contraction in May. Consumer durables and capital goods both remained elevated year-on-year, although monthly revisions show some variation in the pace of growth across sectors.
Analysts and market observers will note two contextual points that accompany the headline: first, a statistical change introduced in May with the switch from wholesale to producer prices for factory output calculations; and second, revisions to May data that affect the baseline for month-on-month comparisons. These elements are part of the data narrative and are relevant when assessing short-term momentum.
Overall, the June results contributed to a stronger quarterly reading for industrial output in April-June, which expanded 5.8% compared with the year-ago quarter. The composition of the monthly data highlights manufacturing and electricity as the principal drivers of the latest increase, with mining and subcategories such as consumer durables and capital goods also showing positive year-on-year outcomes.