India industrial output growth slows in June from year ago
Thursday, 14 August 2008
NEW DELHI, Aug 13 (AFP): India's industrial output grew by just 5.4 per cent in June, down sharply from the rate a year earlier, data showed yesterday, in another sign that Asia's third-largest economy is slowing.
Experts have forecast economic growth will slow this year as high borrowing costs and tough global financial conditions bite, with some predicting expansion as low as seven per cent, down from nine per cent last year.
Industrial production accelerated by just 5.4 per cent in June compared with 8.9 per cent in the same month a year earlier, the figures showed.
"We expect the overall trend to be down on the back of rising inflation, interest rates and slowing export demand," said HSBC economist Manas Paul.
But the figure-in line with analysts' forecasts-picked up from May when industrial output grew by a revised 4.1 per cent while consumer production remained robust, growing by 10 per cent, partly due to a low year-ago base.
For the April-June financial quarter, industrial production growth slowed to 5.2 per cent, down from 7.1 per cent in the same period a year earlier, reflecting the impact of a slew of interest rate hikes.
The central bank has been aggressively tightening monetary policy in a bid to curb inflation riding at 13-year highs, denting spending by consumers who take out loans to finance their purchases.
The vehicle sector, among others, has shown a sharp slowdown in sales, reflecting the monetary tightening.
Experts have forecast economic growth will slow this year as high borrowing costs and tough global financial conditions bite, with some predicting expansion as low as seven per cent, down from nine per cent last year.
Industrial production accelerated by just 5.4 per cent in June compared with 8.9 per cent in the same month a year earlier, the figures showed.
"We expect the overall trend to be down on the back of rising inflation, interest rates and slowing export demand," said HSBC economist Manas Paul.
But the figure-in line with analysts' forecasts-picked up from May when industrial output grew by a revised 4.1 per cent while consumer production remained robust, growing by 10 per cent, partly due to a low year-ago base.
For the April-June financial quarter, industrial production growth slowed to 5.2 per cent, down from 7.1 per cent in the same period a year earlier, reflecting the impact of a slew of interest rate hikes.
The central bank has been aggressively tightening monetary policy in a bid to curb inflation riding at 13-year highs, denting spending by consumers who take out loans to finance their purchases.
The vehicle sector, among others, has shown a sharp slowdown in sales, reflecting the monetary tightening.