India: Industrial output expands at fastest pace in eight months in January
Latest reading: Industrial output grew 5.0% in year on year terms in January, which was above December’s 3.5% increase and topped market expectations. January’s figure marked an eight-month high. Looking at the details of the release, manufacturing production accelerated in January, and mining output also grew at a quicker pace.
Meanwhile, the trend improved, with the annual average growth of industrial production coming in at 4.4% in January, up from December’s 4.3%.
Outlook: January’s acceleration was likely a blip, as our panelists expect industrial production to grow less in January–March than in October–December, at the second-weakest pace since Q4 2022. Industrial firms are likely struggling with higher producer prices, which are projected to increase at the quickest speed in two years in January–March due to higher import costs as a result of the recent depreciation of the rupee.