India's Aug industrial output jumps 8% as manufacturing output surges

India's industrial output surged 8% in August, outpacing expectations, according to government data released on Monday. This growth was primarily driven by robust manufacturing and electricity output, despite a decline in mining activity. Economists had anticipated a growth rate of 6.5% for the month, a revision from the previous estimate of 7.4%.

The official statement from the statistics ministry highlighted that manufacturing output had grown by 8% or more over the past three consecutive months, marking a record performance. The government now calculates factory output based on producer prices instead of wholesale prices, a shift implemented earlier in the year. Manufacturing output expanded by 9% year-on-year in August, a significant improvement from the revised 8.2% growth in July.

Electricity generation saw a year-on-year increase of 12.3% in August, up from 8.7% the previous month. Mining output declined by 5.6% year-on-year in August, down from a 0.9% decline in July. The output of consumer durables, encompassing cars and phones, rose by 11.1% year-on-year in August, up from a revised 12% increase in July.

Consumer non-durables, such as food items and toiletries, experienced a year-on-year increase of 2.1% in August, contrasting with a revised drop of 0.8% in the prior month. Capital goods output also surged 16.9% year-on-year in August, surpassing the previous revision of a 19% increase in July. Over the period from April to August, industrial output expanded by 6.7%, representing a notable increase from the 4.2% growth observed in the same period the previous year.