India July Industrial Output Growth Slows to 6.7% as Mining Activity Drags

India’s industrial production rose 6.7% from a year earlier in July, slowing from a revised 8.8% growth in June, as a contraction in mining gains offset strong growth in manufacturing and electricity, government data showed Friday.

Manufacturing output rose 7.3% year-on-year in July, while electricity and gas supply increased 8.7%. Mining and quarrying output fell 0.9%, while water supply, sewerage and waste management rose 7.4%.

The overall Index of Industrial Production stood at 124.8 in July, compared with 117.0 a year earlier.

Industrial output grew 6.3% in the April-July period, compared with 4.0% in the year-ago period. Manufacturing rose 7.0% during the four months, while electricity and gas supply increased 8.7%. Mining contracted 1.1%.

Within manufacturing, 19 of 23 industry groups recorded year-on-year growth in July.

Electrical equipment output rose 28.3%, motor vehicles, trailers and semi-trailers increased 22.2%, and other transport equipment gained 22.0%. Machinery and equipment output rose 12.1%.

Among use-based categories, capital goods output rose 16.1% year-on-year, intermediate goods 10.0% and consumer durables 10.5%.

Infrastructure and construction goods output increased 6.9% and primary goods rose 4.1%.

Consumer non-durables were the only use-based category to contract, falling 1.0% from a year earlier.

The government revised June industrial production growth to 8.8% from the earlier quick estimate of 7.3%