rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » India's industrial output falls in Dec

India's industrial output falls in Dec

February 12, 2014 18:18 IST

India's industrial production shrunk for the third straight month in December, dragged down by weak investment and consumer demand and pointing to continued sluggishness in Asia's third-largest economy.

Industrial output fell 0.6 percent in December from a year earlier, after contracting a revised 1.3 percent in November, data from the federal statistics ministry showed on Wednesday.

Analysts polled by Reuters had forecast a contraction of 1.0 percent in the industrial output.

The manufacturing sector, which constitutes about 76 percent of industrial production, contracted 1.6 percent from a year earlier.

Capital goods production, a barometer for investments in the economy, fell an annual 3.0 percent in December, compared with a 0.3 percent provisional growth in the previous month.

India last week cut its estimate of annual growth for the current fiscal year ending in March to 4.9 percent from 5 percent because of a contraction in the manufacturing and mining sectors.

The weak output data will do little to help the Congress party-led ruling alliance, which faces an uphill battle in a general election due by May.

(Reporting by Rajesh Kumar Singh)

Source:
© Copyright 2014 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.