The Index of Industrial Production (IIP) for Sep 2015 hits a snag as it falls to a low 3.6% year on year growth. This is much lower than August. Manufacturing Disappoints Big Time While Electricity went up a lot, mining declined to just 3%. The big disappointment though was the fall in Manufacturing IIP where we saw it plummet to 2.6%. This is very disappointing, as we were supposed to see Manufacturing carry the India story forward. If you look at the Use based indexes: (Click to enlarge) Nearly all of the indexes are looking downwards. Our View: Lousy Manufacturing Data Was September a really bad month? It wasn’t apparent then. But IIP data is remarkably unreliable so we shouldn’t rush to make a lot of conclusions just yet. All we know is that the recent high in growth numbers was temporary, especially in the Manufacturing sector. October’s numbers will be good.… (Read On…)
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