The IIP for the month of October 2016 came in sharply lower at -1.9% on a YOY basis. The pressure obviously comes from the manufacturing sector because the core sector has shown good growth in the month of October. What is pertinent is that this refers to the period before the pressure of demonetization started on November 09th. That means IIP numbers may come under further pressure in the months of November and December. The chart below depicts the relationship between IIP, Manufacturing Growth and the Core Sector growth over the last 18 months… Continue reading
