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July industrial output surprises with 2.6 pct growth

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Reuters NEW DELHI

NEW DELHI (Reuters) - India's industrial production jumped an unexpected 2.6 percent in July after contracting for two straight months, government data showed on Thursday, good news for Asia's third-largest economy as it tries to emerge from a deep slump.

Analysts polled by Reuters had expected output to shrink an annual 0.8 percent in July after a 2.2 percent contraction in June.

The manufacturing sector, which constitutes about 76 percent of industrial production, rose 3.0 percent from a year earlier, the statistics office said.

Capital goods production, a barometer for investments in the economy, rebounded by a robust 15.6 percent in July from a year earlier.

 

(Reporting by Frank Jack Daniel; Editing by Ross Colvin)

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First Published: Sep 12 2013 | 5:49 PM IST

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