 "A worker cuts a metal pipe inside a steel furniture production factory in Ahmedabad")
Industrial growth was a reasonable 4.2 per cent in July but the data for August could show a moderation, lead indicators show.
The widely-tracked Nikkei purchasing managers' index came down to 52.3 points in August from 52.7 points in July, which had been the highest for the current financial year so far.
Growth in sale of passenger cars also fell to 6.1 per cent in August from 17.5 per cent in July, which was also the highest for the current financial year.
Indirect tax collections also show slower growth, albeit at an elevated 36.7 per cent in August compared to 39.1 per cent in July. Also, more than half the growth was from additional measures such as a rise in excise duty on petroleum in four phases since October, removal of excise duty concessions for the automobile and capital goods sectors, and a rise in the service tax rate to 14 per cent from 12.36 per cent from June.
Similar to July, the August data for the Index of Industrial Production would also get a boost from low growth in the corresponding month last year — base effect, in technical jargon. Industrial production in 2014 had risen 4.3 per cent in June, 0.9 per cent in July and 0.5 per cent in August. The low base effect will continue till October, the month which could witness a sharp rise due to the festival season.
