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The Economy Observer: IIP rises 3.8
+ Share
10-Nov-2017
IIP growth decelerated to 3.8% YoY in September from 4.5% YoY in August, but remained higher than average growth of 2.2% over the first five months of the fiscal (Exhibit 1). Growth was exactly in line with our estimate and slightly lower than consensus of +4.1%.
Output of the manufacturing sector rose by 3.4% YoY in September 2017, unchanged from the preceding month(Exhibit 3). However, this was better than average growth of 1.6% over April-August2017. Growth in manufacturing was not broad-based – as many as 12 of the 23 industry groups within the manufacturing sector reported a fall in production in September 2017. Output of tobacco products, apparels, wood products, paper & paper products, rubber & plastic products and electrical equipment declined by over 5% YoY in the month. Mining output rose by a sharp 7.9% YoY in September on account of a low base (Sep'16: -1.2%), while electricity output rose by 3.4%, the slowest pace in three months.
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