India’s Index of Industrial Production (IIP) grew 3.8% over the previous year, a four month high. (Largely because the headline number of 4% of April was revised down to 3.36%) While this is interesting, the real story is that manufacturing continues to do well at +4.6%. Mining, however dipped below zero, and Electricity generation which had done so well recently, fell substantially. In a way this is real growth , since the IIP measures production quantities, not revenues or rupee numbers. The point being: you could manufacture the same quantity of something but price it higher (inflation) to get a higher rupee number, but the real growth is number of units produced. But let’s not kid ourselves. Even 3.8% is terrible. We should be at the 6-7% numbers to be even remotely sounding like we’re really growing. Use based: Consumer Durables In what is the only interesting part of this picture, IIP has grown in the consumer durables space at 16%.… (Read On…)
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