(Bloomberg) -- India’s industrial production contracted for the first time in almost two years in August, adding to signs that growth in the world’s fastest-expanding economy is moderating.
The index of industrial production declined 0.1% from a year earlier after growing 4.7% in July, the Ministry of Statistics said Friday. Economists surveyed by Bloomberg had predicted a 1% increase.
The figures are in line with other indicators showing India’s rapid growth is starting to taper off. Purchasing managers’ surveys for September showed a slowdown in both the services and manufacturing sectors, while a separate measure of output in eight core industries, such as steel, coal and cement, contracted 1.8% in August from a year earlier.
After expanding more than 8% in the fiscal year through March 2024, economists are now steadily downgrading their forecasts for gross domestic product growth for the current year. The median estimate among those surveyed by Bloomberg is 6.9%, although some banks like Goldman Sachs Group Inc. are predicting as low as 6.5%. The Reserve Bank of India remains more bullish, sticking to its forecast of 7.2% growth earlier this week.
--With assistance from Ruchi Bhatia.
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