Industrial output at 13-month high in November

It was 5.7% as against contraction of 1.8% in October

Industrial activity rose to a 13-month high of 5.7% in November, belying expectations of an adverse impact from demonetisation. It had contracted 1.8% in October, revealed the Index of Industrial Production (IIP) data released on Thursday. 

However, the sharp rise was also due to a statistical illusion — low industrial numbers in November 2015, called the base effect (the IIP fell 3.4% last November), and sharp reversal of a 12-month declining trend in capital goods, helped by highly volatile cable and insulated rubber. If capital goods are taken out, IIP rose 4.7% in November, against 2.1% in the previous month.