"We have been predicting a slightly lower growth and the latest industrial output numbers are no reason to reassess the growth estimate," Planning Commission Deputy Chairman Montek Singh Ahluwalia said on the sidelines of the Plan Panel's meeting on ground water management.

The growth in the first quarter was good, but some slowdown in the second quarter was expected, Ahluwalia said adding: "I would rather call it a moderation in growth rather than slowdown."

To a query on whether the slowdown was on account of the tight monetary policy adopted by the Reserve Bank, he said, " No. I would call it a successful example of macro economic management, consistent with extracting non-inflationary potential of the economy by maintaining growth."

Economy grew by 9.3 per cent in the first quarter of this fiscal, but industrial growth slipped to 7.1 per cent in April-July from 13.2 per cent in the same period a year ago.

Various experts have attributed the slowdown to higher interest rates, which forced consumers to cut spending on household items and automobiles, adversely affecting the manufacturing sector.

Manufacturing sector growth came down to 7.2 per cent during the month as compared to 14.3 per cent in July 2006.