The Index of Industrial Production (IIP) for Jun 2014 comes in at 3.4%, a tad lower than the 5% growth we saw in May.
This is still sub-standard, and has been because of a drop in the growth in Manufacturing to just 1.8%. Mining looks strong at 4.3% and Electricity jumped to +15.7%.
If you like, here are the use based indexes. Basic Materials and Capital Goods showed signs of major improvement, while consumer goods dropped 10%. Durables continue to hurt.
Impact: While growth is lower than expected, this is likely an intermediate data point. The much lower numbers in last year’s July and August will probably mean IIP will not have to work too hard to look up in the next two months. (Data comes with a 2 month lag). We wouldn’t read much into this.