India's May industrial output grows 5.1% y/y on higher electricity output

NEW DELHI: India’s industrial output rose 5.1% in May, led by a pickup in electricity growth, government data showed on Monday, while growth in manufacturing moderated due to supply disruptions linked to the Middle East conflict.

Economists polled by Reuters expected industrial output to ease to 4.5% in May, compared to a growth of 4.9% a month earlier.

The May reading is the second under the revised 2022-23 base year series, reflecting the government’s shift to producer prices from wholesale prices for calculating factory output.

Key numbers

Manufacturing output grew 5.5% year-on-year in May against a revised growth of 6.1% in April.

Electricity generation rose 9.9% year-on-year in May against a revised increase of 4.6% a month earlier.

Mining activity declined 1.6% year-on-year in May against a revised 3.8% fall in April.

India manufacturing activity rose in May despite cost pressures, PMI shows

Output of consumer durables, including cars and phones, grew 7.2% year-on-year in May against a revised 5.6% increase a month earlier.

Output of consumer non-durables, such as food items and toiletries, rose 3.6% year-on-year in May against a revised 0.2% rise in the previous month.

Capital goods output rose 12.9% year-on-year in May against a revised 12% increase in April.

Industrial output in April-May grew 5.1%, compared to an increase of 4.1% a year earlier.