Indian industrial production data for the month of August is set to release tomorrow. According to a DBS Bank research report, the industrial production is likely to have dropped 2 percent on a year-on-year basis, weighed down by softer electricity and manufacturing output. Industrial production had recorded a stronger print of a rise of 4.3 percent in the prior month.
Core industries output had indicated to a widespread slowdown in activity, especially coal, steel and cement, which do not augur well for industrial and infrastructure output.
“These coupled with other high frequency data – car sales, PMIs, imports of capital goods etc. – reinforce a softening trend of growth in 3Q19. Cognizant of a weaker growth momentum, the central bank and the government have undertaken steps to boost growth, which will continue in 2020 as well”, added DBS Bank.
