Mumbai/New Delhi: The Index of Industrial Production number for January is due Friday. Of course, investors these days somewhat disregard this number due to questions of its accuracy. Still, it does give a sense of what is happening in manufacturing.
There are no great expectations this time. Five economists survey by TalkMarkets put it at 3-4%. The most common reason advanced for the slow rate of growth is the base effect. Last January, growth was a solid 16.8%.
Yet, the dip in worrying. A look at the three monthly moving averages reveals a steady decline in this number. Remember the macroeconomic situation is somewhat worsened. Surging crude prices is threatening to pause the growth cycle and companies are worried about rising cost of funds and input costs. No wonder, one after the other, economists are lowering their GDP growth forecasts for fiscal 2012.