(Bloomberg) -- India’s factory output contracted for the first time in more than two years in August, as a sharp fall in capital goods and consumer durables production weighed on activity.
The index of industrial production fell 1.1% in August, data released by the Ministry of Statistics showed Friday. That compares with an estimate for a 1.7% expansion.
- The decline, last seen in June 2017, underscores worsening demand in an economy expanding at the slowest pace in six years
- Capital goods output dropped 21% from a year ago, while consumer durables fell 9.1%
- The data comes days after the central bank cut interest rates for a fifth time this year to spur growth. The Reserve Bank of India also lowered the country’s full-year growth forecast to 6.1% from 6.9% previously
- Infrastructure and construction goods output fell 4.5%
- To read the full statement, click here
--With assistance from Karthikeyan Sundaram.
To contact the reporter on this story: Anirban Nag in Mumbai at firstname.lastname@example.org
To contact the editors responsible for this story: Nasreen Seria at email@example.com, Tuhin Kar, Subramaniam Sharma
©2019 Bloomberg L.P.