India's industrial output shrinks by 7% in October: report

Media reports suggested on Thursday that India's industrial output declined by 7% in October, dragged down by a fall in the capital goods sector. This will be the first contraction in the IIP since June 2009, a national daily reported. The Government is scheduled to release the IIP data on December 12. India's industrial growth slowed to a two-year low of 1.9% in September. India's infrastructure output plunged in October to touch its lowest in six years, raising concern about the fast deteriorating outlook for industrial production. Eight core industries, which have a combined share of 37.90% in the IIP, stalled in October, growing by a mere 0.1%, compared to its growth of 7.2% in October 2010. The core sectorhad expanded by 2.3% in September 2011. Out of Coal, Crude Oil, Natural Gas, Petroleum Refinery and Fertilizer sectors shrank in October, while that of Cement remained flat.