May Industrial output seen at 3-month low of 1.6 per cent y/y - Indian Express

Reuters : Bangalore, Wed Jul 10 2013, 11:41 hrs Private surveys of manufacturing purchasing managers have suggested sluggish growth in the sector over the past few months. Indian factory production growth probably eased to a three-month low in May dampened by weak infrastructure sector output, as weak global demand and consumption weigh on a recovery in Asia's third-largest economy, a Reuters poll found. The median forecast of 23 economists showed output at factories, mines and utilities grew an annual 1.6 per cent in May, after an upwardly revised 2.3 per cent in April. Although the consensus estimate showed growth in industrial output for the fifth consecutive month, the pace is a far cry from the near 10 per cent seen between late 2009 and 2011. "Even though it looks like production has been slightly up, if you look within the core sector, the breakdown indicates it is still pretty weak," said Hanna Luchnikava, an economist at IHS Global Insight. Output in the eight key infrastructure industries, also known as the core sector and which makes up almost 40 per cent of the index of industrial production, slowed to an annual 2.3 per cent in May, from 2.4 per cent in April. Recent data has shown persistent weakness in the Indian economy, which will not support the fragile recovery seen in the final three months of the previous fiscal year. The economy grew at its slowest annual pace in a decade in the fiscal year that ended in March. Indeed, private surveys of manufacturing purchasing managers have suggested sluggish growth in the sector over the past few months. The HSBC Manufacturing PMI survey showed activity in Indian industries flirted with the 50 mark that separates growth from contraction in May and June, even though it has held above that level for over four years. "Generally the momentum remains weak and some of the other indicators like auto sales and PMI have been pretty subdued and there is no real change in the near future," said Siddhartha Sanyal, chief India economist at Barclays Capital in Mumbai. ... contd. ALSO READ P Chidambaram arrives in US to pitch for investment in India Supreme Court clears global tenders to revive defunct Kolar gold mines P. Chidambaram visits US to rescue rupee and court investors Coal regulator will help overhaul coal sector: India Ratings Please read our terms of use before posting comments TERMS OF USE: The views, opinions and comments posted are your, and are not endorsed by this website. You shall be solely responsible for the comment posted here. The website reserves the right to delete, reject, or otherwise remove any views, opinions and comments posted or part thereof. You shall ensure that the comment is not inflammatory, abusive, derogatory, defamatory &/or obscene, or contain pornographic matter and/or does not constitute hate mail, or violate privacy of any person (s) or breach confidentiality or otherwise is illegal, immoral or contrary to public policy. Nor should it contain anything infringing copyright &/or intellectual property rights of any person(s). via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNHdW8tXviMRzTaoof5otmBZQ4HbhQ&url=http://www.indianexpress.com/news/may-industrial-output-seen-at-3month-low-of-1.6-per-cent-yy/1140006/

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