The Index of Industrial Production (IIP) has grown 5.6% to 309.1 from the 292.8 figure last year.
It is useful to remember that IIP is revised in what can only be described as an obscene manner. Consider:
- The July 2010 figure was revised up from 330.8 to 335 (and another revision will happen later). IIP growth has gone up from the 13% reported to over 15% in July.
- June’s figure was scaled down last month from the originally reported 312.4 to 308.4, taking IIP to 5.76% growth from the originally reported 7.13%
Such 1% revisions are HUGE and therefore current data means nothing. This also means there’s little to infer from even seasonally adjusted IIP figures – the rate of growth is shown from cycle.in:
(This does not include the latest IIP report for August)
Markets supposedly fell on the data release but honestly, a 0.73% fall is just noise, hardly attributable to some specific news.
Earlier posts on IIP:
