IIP - Rebounds From Weakness:: Edelweiss

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Industrial activity expanded by 3.8% YoY in November as against the 4.2% contraction witnessed last month. The improvement was exaggerated by payback from previous month, and it would be prudent to analyse the same on 3MMA trend basis. While mining and electricity remained robust, manufacturing continued to be weak. Within manufacturing some export-oriented sectors such as textiles, apparels, petroleum products, etc., continue to witness good traction. Domestic consumption, however, remained weak.

Going ahead, gradual improvement in industrial activity is expected amid cross current of headwind and tailwind. While real incomes improvement would aid consumption (especially urban), expected moderation in exports (weak global economy) and impending expenditure cuts by government (to meet fiscal target) would weigh on the activity.

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https://www.edelweiss.in/research/IIP--Rebounds-From-Weakness/28010.html