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Economy

July 2012 IIP at +0.06%

The Index of Industrial Production (IIP), a notoriously volatile indicator, showed up at +0.06% for July 2012, compared to last year. The trend has been down (if you remove the jiggles) over the last few months.

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The index mimics the drop in the Manufacturing sector which holds a 75% weight. The rest – Mining and Electricity – don’t impress by growth either.

On a use-basis, here’s the split.

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Notes: While the slowdown looks apparent, it’s important to note that the data is likely to be revised substantially later. In fact, the June data has been revised upwards (from -1.81% to -1.75%) but the bigger revision is in the April 2012 data, which was first released at +0.12%, then revised to -0.90% and this month, has been further revised to -1.26%.