The Index of Industrial Production (IIP) for the month of May is expected to be 3.76 percent versus 3.4 percent.
However, the range could be anywhere between 3 to 4.3 percent. There are some outlier estimates for IIP to be anywhere between 0.8 to 6 percent, which shows that a lot of volatility is expected from the figure. Some of the cues that one could look at are the base effect which may be favourable for the IIP figure.
For example in May 2013 the IIP contracted 2.5 percent with manufacturing contracting 3.2 percent.
We also have a data that indicates manufacturing could continue to be in the positive terrain. For example exports in the month of May 2014 that came out of the trade deficit data was quite positive.
It was in double digits. Besides that there was a Year-on-Year rise in the passenger vehicles’ data was up 4 percent in the month of May. One could also look at the sustained two-wheeler output.
