Indian industrial production likely contracted sharply in May, inflation to have slowed to 5.6 pct

Indian inflation and industrial production data for the month of May is set to release tomorrow. According to a DBS Bank research report, industrial production in India is expected to have declined 45 percent year-on-year, taking cues from the sharp correction in manufacturing PMIs, infra industries index and auto sector underperformance.

Output excluding utilities was affected adversely because of the lockdown, with a risk that the closure might have led to disruptions for data agencies, resulting in a deferment in the release.

“May CPI is expected to ease to 5.6 percent y/y. We recall that April’s reading was held back as the nationwide lockdown hindered its data collection process and only partial inputs for other key subcomponents”, added DBS Bank.