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Charts & Analysis

Chart Of The Day: October IIP Down 5%

In a strange twist, the Index of Industrial Production – data I don’t usually take seriously – shows a massive 5.1% drop from October last year. Much of this is because the IIP spiked in October 2010 (showing a 11% growth over the previous year) which moderated in November. But take a look – this is of course interim data and will be revised.

IIP Components

(Click for larger pic)

And in the Use based index we are seeing a collapse everywhere:

IIP Use Based 

All are now below zero.

The broad index has seasonality in it, but the trend looks seriously down.

IIP Graph 

But don’t trust this data – it’s too volatile.