Recession is no more in India, Industrial Output Figure Surges

by khalid on 12/08/2009 · 0 comments

India’s industrial output expanded at its fastest pace in 16 months in June, beating forecasts by a wide margin, as higher salaries of government employees and stimulus spending boosted consumer demand.

Factory output in June rose 7.8 percent from a year earlier, expanding for the six straight month based on revised figures and outpacing a rise of 2.2 percent in May as Government ploughed investment into infrastructure projects and spent more on rural jobs.

The output growth rate is the highest since February 2008 and far exceeded the forecast of 3.3 percent in a Reuters poll of analysts.

Output of consumer durable goods such as home appliances and cars rose 15.5 percent from a year earlier as government employees put their heftier paychecks to work, while capital goods production grew 11.8 percent, indicating fresh investments.

By comparison, China’s industrial output in July grew an annual 10.8 percent, its highest in nine months but lagging forecasts, indicating that emerging economies were leading the global economic recovery.

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