Oct industrial output seen to contract 1.6% MoM

The industrial output numbers for October are due today. According to a CNBC-TV18 poll that economists are expecting a contraction of 1.6% compared to 1.9% in September, on the back of poor capital expansion, reports Latha Venkatesh.

It was expected to be a set of poor number as core sector (accounts for 37% of IIP) growth has come in at 0.1%. Other indicator like car sales also fell 24% YoY in October, while the two-wheeler segment grew by just 2%.

Meanwhile, a newspaper report has quoted government officials speaking of 7% contraction in October. This has set many economists rework their numbers. The poll has thrown a wide variation ranging from a growth of 0.4% to a negative growth of 5.

Also watch the accompanying video.