Dec-20 IIP posted a mild growth of 1.0% to belie our and market expectations of a contraction.
Download Report
Feb 12, 2021
India Dec 20 IIP - A near complete recovery
After a contraction of 2.1%YoY in Nov-20 which was more a function of post festive fatigue, Dec-20 IIP posted a mild growth of 1.0% to belie our and market expectations of a contraction (Bloomberg consensus: -0.5%, QuantEco Research: -0.9%). From a trend perspective, on a quarterly basis, IIP growth for Q3FY21 averages at +1.0%, the first positive reading since Jun-19. Looking beyond the headline print, sequential momentum was fairly strong in Dec-20 (+7.8%MoM), across both sectoral and use-based sub-indices. This is in line with most high frequency indicators which had either moved sideways or seen an improvement vis-à-vis Nov-20.