Festive demand and waning impact of GST may push IIP higher in coming months
IIP for the month of September surprised markets by coming at 3.8% lower than their expectations of 4.2%.
India's industrial production (IIP) or factory output reversed its course in the month of September 2017 and came down to 3.8% compared to 5% growth in the corresponding month of the previous year and 4.3% growth in preceding month.
With this, IIP has missed market expectations which was around 4.2%.
IIP on cumulative basis stands at 2.5% between April - September 2017, lower than the 5.8% growth witnessed in the similar period of the previous year.
The trio at Care Ratings said, "The industrial output could see a pickup in October’17, backed by higher festive demand and the waning impact of GST led
disruptions. We expect the growth rate to average to 4-5% for the entire year."
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