IIP above estimates ..

Aug'09 Industrial Production up by 10.4%, above consensus estimates

• The Index for Industrial Production (IIP) for the month of Aug'09 increased by 10.4% yoy, above the Bloomberg consensus estimate of 9.7% yoy increase.
• From sectoral perspective, manufacturing output grew by 10.2% yoy, while mining output increased by 12.9% vs 2.8% yoy of the previous year.
• From use-based perspective, capital goods and electricity production posted a strong set of numbers by registering a 8.3% yoy (vs 0.8% yoy in Aug'08) and 10.6% yoy (vs 0.8% yoy during the year ago period), mainly on account of the low base effect of last year.
• Consumer goods production came in at 8.5% yoy higher compared with 6.4% yoy growth seen during the August 2008.
• Importantly, the IIP growth for the July 2009 has been revised upwards to 7.2% from 6.8% provisional earlier. This is the second consecutive month, where the IIP has been revised upwards.