IIP at 4-month high as capital goods boost output 2.6% in July

Aided by a rebound in capital goods production, the country’s industrial output grew a better-than-expected 2.6 per cent in July compared with the same period last year. This was a four-month high. This brings some cheer to an economy that was slowing down with the Index of Industrial Production contracting in the two months before July, the rupee sliding sharply against the US dollar, and the current account/fiscal deficits widening. A marginally lower retail inflation in August, at 9.52 per cent against 9.64 per cent in July, also improved the sentiment.

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