December industrial output seen up 12% y/y

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Industrial output to rise 12% in December from a year earlier, the median forecast in a poll of 21 economists shows. That is marginally higher than an annual rise of 11.7% in November.

Forecasts ranged from a rise of 9.94% to 14 percent.

FACTORS TO WATCH: Manufacturing, on the back of strong consumer demand on tax concessions and easier credit, is expected to continue to propel output growth. An exports revival since last November is also expected to underpin growth momentum in factory output.

MARKET IMPACT: A strong rise would reinforce investors' view the economy, which is expected to grow 7.2% this fiscal year from a six-year low last year, is on a firm footing.

A robust figure, ahead of the Feb. 26 annual budget, would also allow the federal government, fighting a 16-year high fiscal deficit, to cut the deficit by phasing out fiscal stimulus.

A strong rise would help the central bank to focus better on containing inflation by raising interest rates in coming months.