What's NewEconomic slowdown deepens as IIP growth plunges to an eight-year low of (-)4.3% YoY in September 2019.

Industrial output, a barometer of India's business activity, fell to an eight-year low of (-)4.3% YoY in September 2019, suggesting further worsening of the slowdown in the economy. The contraction in industrial output was broad-based and was far below the market expectation. The persistent slowdown in industrial growth may have a bearing on the gross domestic product in the second quarter of FY20, which is already at a six-year low. Moreover, IIP growth in October is also likely to be weak, as suggested by the drop in manufacturing PMI to a 2-year low of 50.6 in October from 51.4 in the last month. (November 11, 2019)

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