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Oct Industrial Output In Negative Territory

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India's industrial output declined by 7 per cent in October, dragged down by a fall in the capital goods sector, the first time it moved into negative territory since June 2009, The Times of India reported on Thursday, quoting an unnamed source.

"Initial estimates show that industrial production has shrunk by 7 per cent. But with more data coming in, the decline may be around 5 percent," the newspaper quoted the source as saying.

The government is expected to release the data officially next week, it said.

The industrial sector has been under stress for the past few months, hit by rising interest rates, input costs and stubbornly high inflation.

Industrial growth slowed to a two-year low of 1.9 per cent in September hurt by sluggish manufacturing sector gowth which has been hit by rising interest rates and a decline in mining output.

Eight core industries, which have a combined share of 37.90 per cent in the index of industrial production , grew 0.1 per cent, compared to its growth of 7.2 per cent in October 2010, the newspaper said.

Coal, crude oil, natural gas, petroleum refinery products and fertiliser sectors declined in October, while cement output remained flat, it said.

(Reuters)