India's Industrial Production Slows Sharply in May

July 11, 2008
Manufacturing output rose 3.9%

Hit by rising inflation, high input costs and monetary tightening, India's industrial production slowed sharply in May to its slowest pace in six years, official figures showed July 11. Industrial growth in Asia's second largest economy was at 3.8% in May, against 10.6% in the same month last year.

Manufacturing output rose 3.9% in May against 11.3% for the corresponding period a year earlier.

"The industrial data for May was disappointing. The sharp deceleration raises concerns about the manufacturing outlook for the second half of the year," said Sherman Chan, economist with Moody's Economy.com."Indias export outlook has become increasingly gloomy, as the global financial market turmoil seems far from over and the U.S. economy is not showing signs of recovery."

Industrial output rose 8.1% in the financial year ending March 2008.

Capital goods growth slumped to 2.5% in May from 22.4% a year ago.

Copyright Agence France-Presse, 2008

Popular Sponsored Recommendations

How to Build Zero-Cost On-Site Solar and Storage Projects

Nov. 25, 2023
The Inflation Reduction Act offers tax credits, incentives, and financing that enable no-cost projects. In Enel’s eBook, discover the critical role that incentives play in your...

Food and Beverage 2024 Trends and Outlook for North America

Oct. 29, 2023
Ready to hear what 200 of your peers said are the top challenges and opportunities in 2024? Don’t fall behind. Uncover actionable insights to better prepare for 2024 in this whitepaper...

Powering Up Productivity: The Transformative Power of AP Automation in Manufacturing

Oct. 25, 2023
Discover how AP Automation is revolutionizing the manufacturing industry, driving efficiency, cost savings, and security. In today's world, automation is the key to staying competitive...

What Is Your Smart Factory IQ?

Sept. 24, 2023
It’s time to put Smart, data-driven manufacturing operations to the test. In this comprehensive whitepaper we show you how to determine the Artificial Intelligence Quotient (AIQ...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!