Growth in industrial production rose marginally in Oct-24 to 3.5% from 3.1% in Sep-24, broadly in line with market expectations
Download ReportQuantEco Research || Oct-24 IIP: A modest festive bump-up
IIP growth in Oct-24 continued to enjoy a festive spurt, with some of the lead indicators too capturing the buoyancy in the month, such as PMI, passenger vehicle sales, E-way bills etc. Having said, the pre-festive/festive ramp-up in IIP appears moderate at best. The 3.3% annualized average growth over Sep-Oct-24 is the weakest back-to-back growth since Apr-23 if one were to ignore the negative print in Aug-24. Overall, the industrial outlook appears cautious. From a GDP perspective, post the slippage in Q2 FY25 momentum, we have now revised lower our full year growth estimate to 6.4%. With input price inflation likely to swing from negative in FY24 to positive in FY25 (we expect WPI inflation to increase to 2.5% in FY25 from -0.7% in FY24), the industry value-add could remain under pressure amidst margin compression.