New Delhi: Industrial output surged 6.4 percent (YOY) in August, giving the highest since October 2012. As per the data released on Monday, the numbers exceeded the analyst expectations by providing a robust data pointer to a rebounding economy.
What surprised analysts was the expansion in capital goods by 6.8 percent with rise in consumer goods in August. Nevertheless, the usually volatile capital goods segment witnessed a growth in nine out of 10 months despite the government spending less in this sector.
The growth in the index of industrial production (IIP) in August, however, was much higher than a 2.6 percent expansion in the core sector, which contributes 38 percent to IIP.
The latest data showed IIP growing 4.1 percent during April to August, compared with 3.1 percent a year earlier, despite the trimming of July growth to 4.1 percent from 4.2 percent announced earlier.
Manufacturing on the other hand, rose 6.9 percent (YOY) in August, compared with 4.6 percent in the previous month.
Mining, too, grew 3.4 percent (YOY) compared with 0.9 percent in July. Electricity generation grew 5.6 percent (YOY) in August, higher than 4.1 percent in the previous month.