In a massive jump, the Index of Industrial Production (IIP) jumped to +8.21% in October 2012. While Mining indexes slowed, the jump was because of the heavily weighted Manufacturing and Electricity indexes.
While the spiky nature of this data makes it unreliable, it’s important to note the heavy deviation from the downtrend.
This may be explained by the Diwali effect. Production slows in Diwali in India, and has done so for hte last six years. In 2011, Diwali was in October, while in 2012 it was in November.
While it might be taken as an uptrend resumption, we’ll have to see a couple more months of data to see if this is real or a random outlier.
The Use Based Indexes show a massive move in consumer goods data, both durables and non durables:
The Index of September 2012 was marginally revised downwards, while that of July was revised marginally upwards. No large surprises on that front.
