Rising by 2% y/y, Industrial Production index posted a subdued performance in seasonally and working-day adjusted series in August, after a decline of 4% in July.  The sub-index of manufacturing performed even worse with posting 1.4% growth after contracting by 5.4%, which is the industry accounts for more one fourth of the economy.

3-month moving average figures are stilt negative territory, suggesting a weaker GDP growth in 3Q. We need to see robust growth in September’s IP data, which is scheduled to be announced on November 8, to be convinced that the slowdown in 3Q could be milder than expected.