India's production rises at fastest pace in 16 months
Thursday, 13 August 2009
NEW DELHI, Aug. 12 (Bloomberg): India's industrial production increased at the fastest pace in 16 months in June, adding to signs that Asia's third-largest economy has escaped the worst of the global recession.
Output at factories, utilities and mines jumped 7.8 per cent from a year earlier after a revised 2.2 per cent gain in May, the statistics agency said in New Delhi today. That was more than double the 3.8 per cent rise expected by economists.
Manufacturing is beginning to recover across Asia as government stimulus worth about $1 trillion starts to kick in and customers order semiconductors, textiles and processed food produced in the region. China's industrial production rose the most in five months in July and Malaysian output fell the least in seven months in June.
"Asian economies are in recovery mode," said Duncan Wooldridge, chief Asia economist at UBS AG in Hong Kong. "We believe Asia has bottomed and will improve in the second half of 2009 and in 2010."
Bonds fell. The yield on the 6.07 per cent note due May 2014 rose to 6.78 per cent as of 12:02 p.m. in Mumbai from 6.74 per cent before the report, according to the central bank's trading system.
India's industrial production has benefited from record low interest rates, which have encouraged consumers to borrow to purchase cars, motorbikes and other factory-made goods.
The Reserve Bank of India cut borrowing costs six times from October to April to help shield the economy from the worst global downturn since the Great Depression.
Output at factories, utilities and mines jumped 7.8 per cent from a year earlier after a revised 2.2 per cent gain in May, the statistics agency said in New Delhi today. That was more than double the 3.8 per cent rise expected by economists.
Manufacturing is beginning to recover across Asia as government stimulus worth about $1 trillion starts to kick in and customers order semiconductors, textiles and processed food produced in the region. China's industrial production rose the most in five months in July and Malaysian output fell the least in seven months in June.
"Asian economies are in recovery mode," said Duncan Wooldridge, chief Asia economist at UBS AG in Hong Kong. "We believe Asia has bottomed and will improve in the second half of 2009 and in 2010."
Bonds fell. The yield on the 6.07 per cent note due May 2014 rose to 6.78 per cent as of 12:02 p.m. in Mumbai from 6.74 per cent before the report, according to the central bank's trading system.
India's industrial production has benefited from record low interest rates, which have encouraged consumers to borrow to purchase cars, motorbikes and other factory-made goods.
The Reserve Bank of India cut borrowing costs six times from October to April to help shield the economy from the worst global downturn since the Great Depression.