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India's factory output posts steepest decline in eight years
[NEW DELHI] India's factory output shrank to the lowest level in eight years, as a sharp fall in capital goods production underlined weak demand in Asia's third-largest economy.
The index of industrial production fell 4.3 per cent in September, data released by the Ministry of Statistics showed Monday. That compares with an estimate for a 2.5 per cent contraction, and is the lowest since Oct 2011.
Capital goods output dropped 20.7 per cent from a year ago, while consumer durables fell 9.9 per cent
The decline caps yet another quarter of subdued activity, belying expectations of a quick recovery after economic growth slipped to a six-year low of 5 per cent in the April-June period
Gross domestic product data for the three months to September is due Nov 29 and will probably show a mild recovery in growth to 5.5 per cent. Economists, however, say that may be more because of a favourable base effect