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Economy

August 2010 IIP comes in at 5.6%

The Index of Industrial Production (IIP) has grown 5.6% to 309.1 from the 292.8 figure last year.

IIP at 5.6%

It is useful to remember that IIP is revised in what can only be described as an obscene manner. Consider:

  • The July 2010 figure was revised up from 330.8 to 335 (and another revision will happen later). IIP growth has gone up from the 13% reported to over 15% in July.
  • June’s figure was scaled down last month from the originally reported 312.4 to 308.4, taking IIP to 5.76% growth from the originally reported 7.13%

Such 1% revisions are HUGE and therefore current data means nothing. This also means there’s little to infer from even seasonally adjusted IIP figures – the rate of growth is shown from cycle.in:

IIP: Seasonally adjusted (This does not include the latest IIP report for August)

Markets supposedly fell on the data release but honestly, a 0.73% fall is just noise, hardly attributable to some specific news.

Earlier posts on IIP: