India’s industrial production maintained its pace in Feb-23, as it grew by 5.6%YoY compared to 5.5% in Jan-23
Download ReportQuantEco Research || Feb-23 IIP - Stable growth = Supportive base > Sequential slowdown
India’s industrial production maintained its pace in Feb-23, as it grew by 5.6%YoY compared to 5.5% in Jan-23 (revised upwards from 5.2%). Sequentially, IIP index contracted by 5.6%MoM – which is higher than pre-COVID average sequential moderation of 4.9% typically seen in the month of February owing to lesser number of working days. Overall, Feb-23 IIP is a feel-good number. It masks the higher than historical sequential slowdown seen in momentum, as a favourable base kept headline growth maintained. Having said so, from high frequency lead indicators we know that sequential momentum in economic activity was strong at the end of the year, with several indicators such as GST, E-way bills generated, PMI manufacturing ending FY23 at high/record levels. Looking ahead at FY24, GDP growth is expected to moderate to 6.0% compared to 7.0% in FY23.