India's industrial output rose 7.7 percent in the year through September, marginally slowing from August, which analysts said could be due to weakening demand on the back of erratic monsoon rains. The September increase compared with a rise of 7.9 percent in the year through August and 8.4 percent in the year through July. It is the second straight month that industrial output has slowed from the previous month.
Industrial output accounts for nearly a quarter of India's gross domestic product and analysts were expecting growth to pick up in September as manufacturers prepared for demand ahead of the festive season of Diwali, or the festival of lights.
"The data is slightly below our expectations of around 8 percent. Going forward, it remains to be seen how much of the momentum can be maintained in the face of the effects of a poor monsoon," said Sanjeet Singh, economist at ICICI Securities.
"Most probably, the November data will give a better idea about the impact of the monsoon on output."
Indian consumers generally splurge during the festive season running from September to November culminating with Diwali, which signifies the start of the new year.
Manufacturing production, representing more than 75 percent of industrial output, rose 8.0 percent in the year through September.
Consumer goods, ranging from soaps to televisions, were 10.4 percent higher in September than a year earlier, slowing from the previous month's rise of 10.7 percent.
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