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India’s July industrial output growth slows to 6.7% y/y as mining contracts
Mining activity contracted as capital goods rose 16.1%, helping offset slower manufacturing and electricity growth, data from the Ministry of Statistics and Programme Implementation showed.
India's industrial output growth slowed to 6.7% in July, data showed on Friday, as the Ministry of Statistics and Programme Implementation reported mining activity contracted 0.9% year-on-year.
Weather-Related disruptions significantly impeded mining and quarrying activity, while growth in manufacturing and electricity generation eased from June's revised 8.8% figure.
Capital goods output rose 16.1% in July, marking a fourth consecutive month of double-digit growth, while consumer non-durable goods production fell 1% as household spending on everyday items remained weak.
Rajeev Sharan, head of research at Brickwork Ratings, observed that the data reveals a widening split in household spending, with discretionary purchases on durables robust while everyday items decline.
Economists await Monday's release of GDP figures for April-June, with Rajani Sinha, Chief Economist at CareEdge Ratings, emphasizing that industrial activity remains "largely resilient" despite global uncertainties.