India Nov industrial output slides after Oct surge

AP News
Posted: Jan 11, 2013 2:55 AM

MUMBAI, India (AP) — India says industrial output contracted in November, after a surprise October surge, possibly strengthening the central bank's resolve to trim interest rates when it meets later this month.

Industrial production fell 0.1 percent in November from a year ago, hurt by a 5.5 percent plunge in mining output and a sharp slowdown in manufacturing. That reversed October's revised 8.3 percent rise, government data showed Friday.

The data are distorted by India's main holiday season during October and November. Last year, the festival of Diwali fell in October. This year, it was in November, skewing year over year comparisons. Taken together, the data show a small acceleration in industrial output over the past few months.

Sputtering economic growth has put enormous pressure on India's central bank to cut rates.