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IN: Industrial Production
| Consensus | Consensus Range | Actual | Previous | |
| Year over Year | 4.5% | 3.6% to 5.2% | 5.1% | 4.9% |
Highlights
India's index of industrial production rose 5.1 percent on the year in May, picking up from growth of 4.9 percent in April. Within the industrial sector, manufacturing output growth moderated from 6.2 percent to 5.5 percent. More timely PMI survey data show conditions in the manufacturing sector gained momentum in May, with June data scheduled for publication later this week.
Market Consensus Before Announcement
Industrial output expansion expected to slow to 4.5 percent in May from 4.9 percent in April, showing weaker growth due to the effect of the Mideast war.
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.