JANUARY IIP: Industrial production in January at 6.8%:: Kotak Securities PDF Link

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JANUARY IIP: CAME AT 6.8%
Industrial production in January at 6.8%; sharply higher than revised 2.5% (from 1.8%) in December
Industrial production in January surprised on the upside with 6.8% growth from
2.5% growth in December (revised upwards from 1.8%). High volatility in IIP and its
component makes it extremely difficult to rely on the series for policy analysis and
makes it difficult to predict its future trend.
Cumulative growth during Apr-Jan FY12 has slowed to 4% vs. 8.3% last year, while
the advance GDP estimates indicate the industrial sector growth for the entire FY12
at 3.9%.
3MMA of IIP recovered sharply to 5.07% vs. 7.37% 3MMA in January 2011. Sharp
growth in manufacturing sector at 8.5% (wt. 75.53%) saved the day. Slower growth
in Electricity (wt. 10.32%) at 3.2%, and contraction in mining sector at -2.7% (wt.
14.16%) brought down the industrial growth, though.