Nov industrial activities show 2.4% growth

Surpassing all expectations, industrial activity as measured by the Index of industrial Production (IIP) rebounded into positive territory in month of November , to show a 2.4% industrial growth.

The median forecast for IIP numbers in ET poll of 12 economists was 1.6% while Reuters poll had suggested a 1% contraction in IIP numbers for November.

Economists pointed out that lower base effect in corresponding month last year ���5.3%���and signs of recovery in industrial activity in second half of November are reasons for the better than expected growth rate in November.

Industrial activity has contracted by 0.3% in October.

Manufacturing accounting for nearly 80% of the index of industrial production showed an year on year growth of 2.4% in November while it contracted by 1.2% in October. 10 out of 17 subgroups in manufacturing segment posted positive growth in November.

Electricity generation remained healthy posting a growth rate of 3.1% while growth in mining activity fell to 0.5%. Electricity generation and mining witnessed 4.4% and 2.8% growth respectively in October.