India's July industrial output growth slows to 6.7% y/y as mining contracts

Business Recorder reported that India's industrial output rose 6.7% year on year in July, a slower pace than the previous month. Mining activity contracted, while manufacturing and electricity output also expanded more slowly than before. Economists polled by Reuters had expected growth of 6% after a revised 8.8% in June.

Manufacturing output grew 7.3% in July, compared with a revised 9.5% in June. Electricity generation rose 8.7%, down from a revised 11.3% the month before, and capital goods output increased 16.1% against 17.9% in June. Mining output fell 0.9% after a revised 1.6% gain in June, while the durables group, which covers cars and phones, expanded 10.5%.

Non-durable consumer output, which includes food and toiletries, declined 1% year on year, compared with a 5.6% rise in June. Industrial output for April to July rose 6.3%, up from 4% a year earlier. According to the report, the government changed its calculation basis in May, moving from wholesale to producer prices for factory output.