Indian industrial production likely to have declined in August on weaker electricity and manufacturing output

Indian industrial production data for the month of August is set to release tomorrow. According to a DBS Bank research report, the industrial production is likely to have dropped 2 percent on a year-on-year basis, weighed down by softer electricity and manufacturing output. Industrial production had recorded a stronger print of a rise of 4.3 percent in the prior month.

Core industries output had indicated to a widespread slowdown in activity, especially coal, steel and cement, which do not augur well for industrial and infrastructure output.

“These coupled with other high frequency data – car sales, PMIs, imports of capital goods etc. – reinforce a softening trend of growth in 3Q19. Cognizant of a weaker growth momentum, the central bank and the government have undertaken steps to boost growth, which will continue in 2020 as well”, added DBS Bank.