India September industrial output: growth slows to 6.7% as mining shrinks 6.2%

Mining shrank for a third month in a row while manufacturing slowed

The index of industrial production (IIP) stood at 124.3 in September. Manufacturing grew 7.6%, down from 8.6% in August. Mining and quarrying fell 6.2%, after a 4.6% fall in August. Fuel minerals bucked the trend. They grew 2.1% after falling 5.1% in August.

Investment goods still lead growth, but they are slowing

• Capital goods, the machinery and equipment businesses use to produce other goods, grew 10.4%. That is down from 15.9% in August and 19.0% in July.
• Infrastructure and construction goods grew 7.2% (8.0% in August).
• Consumer durables grew 6.0% (10.5% in August).
• Consumer non-durables grew only 1.4%.
• Pharmaceuticals output fell 8.9%, to an index of 112.9.

Electricity shortages have almost disappeared since mid-October

Daily grid data measure electricity in million units (MU). Energy shortage is the demand the grid could not supply. All-India shortage peaked at 40.5 MU on October 6 and was still 31.3 MU on October 14. Since October 18 it has stayed between 0 and 1.3 MU a day. On October 27 it was 1.0 MU. Demand also eased. Energy met fell from about 5,470 MU on October 14 to 4,865 MU on October 27. Maximum demand met that day was 226 gigawatts (GW). Coal generation held steady at about 3,700–3,970 MU a day. Hydro generation drifted down to about 319 MU, from about 380 MU on October 18. Renewable generation rose to 932 MU on October 27.

August figures were revised lower

August IIP growth was revised to 7.8% from 8.0%. The August pharmaceuticals index was revised from 124.5 to 115.0, which turned its growth from +1.6% to -6.1%. As a result, the August consumer non-durables index fell from 114.3 to 110.8, and its growth moved from +2.1% to -1.1%.