Key Details
Headline growth: The Index of Industrial Production rose 6.7% year-on-year in July 2026, with the index increasing from 117.0 to 124.8.
Four-month performance: Industrial output grew 6.3% during April–July 2026, compared with 4.0% in the corresponding period of 2025.
Sectoral picture: Manufacturing expanded 7.3%, electricity and gas supply 8.7%, and water, sewerage and waste-management output 7.4%. Mining and quarrying contracted 0.9%.
Investment-related production: Capital goods grew 16.1% and intermediate goods 10%, while infrastructure and construction goods rose 6.9%.
Consumer categories diverged: Consumer durables increased 10.5%, but consumer non-durables declined 1%.
The release initially compares July with June’s 7.3% quick estimate. June has now been finally revised to 8.8%, meaning industrial growth moderated in July on the updated series.
Manufacturing Growth Extended Across Most Industries
Of the 23 manufacturing groups covered, 19 recorded year-on-year growth. The largest positive contributions came from:
Industry | July 2026 growth | Products supporting the increase |
|---|---|---|
Electrical equipment | 28.3% | Switchgear and control panels, UPS and solid-state drives, optical-fibre connectors |
Motor vehicles, trailers and semi-trailers | 22.2% | Auto components, passenger cars and commercial vehicles |
Machinery and equipment | 12.1% | Construction machinery, pumps and turbines |
Other transport equipment grew 22%, rubber and plastic products 18.6%, and computer, electronic and optical products 11.1%.
The breadth of positive industry groups strengthens the manufacturing signal, although output was uneven. Pharmaceutical production fell 5.6%, chemicals declined 2.7% and wearing apparel contracted 0.6%.
Capital Goods Provide the Strongest Economic Signal
Production of capital goods—machinery and equipment used to produce other goods—grew 16.1% in July and 15.4% during April–July. Intermediate-goods output, which captures inputs used in subsequent production, increased 10% during the month.
Together with growth in electrical equipment, machinery, commercial vehicles and construction equipment, these figures are consistent with stronger investment and industrial supply-chain activity.
IIP nevertheless measures output rather than new investment commitments. The capital-goods figures therefore indicate increased production of investment-related equipment, but do not by themselves establish the durability or source of investment demand.
The Consumption Picture Is Less Uniform
Consumer durables—including longer-lasting products such as vehicles and appliances—grew 10.5%. Consumer non-durables, which cover frequently purchased products, contracted 1% and recorded only 1.1% growth during April–July.
This gap suggests that industrial momentum has not extended evenly across consumer-facing production. Durable-goods manufacturing is benefiting from strong vehicle and electrical-equipment output, while everyday consumption-linked production remains relatively subdued.
Mining Remains the Weak Link
Mining and quarrying declined 0.9% in July and 1.1% over April–July. Within the sector, metallic minerals grew strongly, but this was offset by contractions in fuel minerals and non-metallic minerals.
The divergence matters because weak domestic mineral output can create input constraints for manufacturing and infrastructure even when downstream industrial production is expanding.
What Is the Index of Industrial Production?
The Index of Industrial Production (IIP) tracks changes in the volume of output produced by mining, manufacturing, electricity and selected utility activities. July’s figures are quick estimates compiled at an 88.9% response rate and may be revised when additional production data become available. The new series uses 2022–23 as its base year.
Policy Relevance
The encouraging signal: Growth in capital goods, intermediate goods, electrical equipment and machinery points towards an industrial expansion supported by investment-related and supply-chain production.
The unresolved weakness: Contractions in mining and consumer non-durables, alongside declines in chemicals and pharmaceuticals, show that headline growth is not yet evenly distributed.
The next test: Future releases will need to show whether capital-goods momentum is sustained, whether mining recovers and whether stronger production begins to extend to mass-consumption industries. A broader convergence would provide firmer evidence of durable industrial growth than the headline number alone.
Follow the Full Data Release Here: Quick Estimates of the Index of Industrial Production for July 2026