India's July industrial output growth slows to 6.7% y/y as mining contracts

India's industrial output growth decelerated to 6.7% year-on-year in July, according to data released on Friday. The slowdown was primarily attributed to a contraction in mining activity. Economists surveyed by Reuters had anticipated the growth rate to decelerate to 6% in July, down from a revised 8.8% increase in the previous month.

In May, the government transitioned from using wholesale prices to producer prices for calculating factory output. In July, manufacturing output expanded by 7.3% year-on-year, a revision from the earlier 9.5% growth in June. Electricity generation saw an 8.7% year-on-year increase in July, compared to a revised 11.3% growth in the previous month.

Conversely, mining output shrank by 0.9% year-on-year in July, a decline from the previous month's revised 1.6% growth. India's infrastructure output expanded by 5.4% year-on-year in July. Consumer durables, encompassing cars and phones, recorded a 10.5% year-on-year increase in July, a revision from the earlier 10.3% growth. On the other hand, consumer non-durables, including food items and toiletries, witnessed a 1% decrease in July, a revision from the prior month's 5.6% growth.

Capital goods output rose by 16.1% year-on-year in July, a significant improvement from the earlier 17.9% growth in June. Overall, industrial output from April to July grew by 6.3%, up from an increase of 4% a year earlier.