| Consensus | Actual | Previous | |
|---|---|---|---|
| Year over Year | 5.2% | 5.6% | 5.2% |
Highlights
India's index of industrial production rose 5.6 percent on the year in February after advancing 5.2 percent in January. Within the industrial sector, year-over-year growth in manufacturing output picked up more sharply from 3.7 percent in January to 5.3 percent in February. PMI survey data indicate that growth in India's manufacturing sector was steady in February and then strengthened in March.
At the Reserve Bank of India's most recent policy meeting, held last week, officials left policy rates on hold after increasing them by a cumulative 250 basis points since May 2022. Officials stressed that they"remain resolutely focused on aligning inflation with the target" but also noted that previous policy tightening is"working through the system".
At the Reserve Bank of India's most recent policy meeting, held last week, officials left policy rates on hold after increasing them by a cumulative 250 basis points since May 2022. Officials stressed that they"remain resolutely focused on aligning inflation with the target" but also noted that previous policy tightening is"working through the system".
Market Consensus Before Announcement
Year-over-year industrial production growth is expected to rise 5.2 percent for a second straight month in February
Definition
Industrial production measures the physical output of the nation's factories, mines and utilities. Data are not seasonally adjusted and the main is on the annual growth rate of total industrial production and, within that, manufacturing output. The report is usually released around six weeks after the end of the reference month.
Description
Investors want to keep their finger on the pulse of the economy because it usually dictates how various types of investments will perform. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers more subdued growth that will not lead to inflationary pressures. By tracking economic data such as industrial production, investors will know what the economic backdrop is for these markets and their portfolios.
The index is a quantitative index with the production of the items being expressed in physical terms. The Index is compiled by taking into account the quantities of items produced during the current month, compared with the average monthly production in the base year. Selection of items is based on the total production of the items as the primary (main) product as well as secondary (by) product. Data are available monthly within six weeks of reference month.
The index is a quantitative index with the production of the items being expressed in physical terms. The Index is compiled by taking into account the quantities of items produced during the current month, compared with the average monthly production in the base year. Selection of items is based on the total production of the items as the primary (main) product as well as secondary (by) product. Data are available monthly within six weeks of reference month.
