Industrial production growth at three-month high of 5% in February

News

• Industrial production growth accelerated to a three-month high of 5% in February compared with 2.6% in the previous month on the back of strong manufacturing, data released by the statistics office showed.
• Growth for November was also revised to 5.2% from 3.9% estimated initially, pointing to an upward turn in the more frequent indicators of growth, though still negative consumer durables production pointed to a weak buyer sentiment.
• Though the Reserve Bank did not cut rates in its policy review earlier this week, its hard talk forced banks into cutting rates, a move that will also provide stimulus to demand.
• Growth between April 2014 and February 2015, as measured by the Index of Industrial Production ( IIP), is 2.8% compared with -0.1% in the corresponding period last year.
• Manufacturing sector, which contributes 75% to the index, grew 5.2% in the month, compared to a 3.9% contraction in the corresponding month last year.