India’s industrial output has shrunk for the second consecutive month, falling by 0.7% in August. In July, the Index of Industrial Production had dropped by 2.5%. Sectoral growth also fell, with output in capital goods falling a massive 22.2%. Growth in the mining and manufacturing sectors also fell, while electricity generation was up just 0.1%, Mint reported.

Data from the Central Statistics Office showed mining and manufacturing contracted 5.6% and 0.3% respectively. Consumer goods production recorded growth of 1.1% in August, while the figure was 6% a year ago.

The Reserve Bank of India had lowered key interest rates last week, and said growth is expected to increase. It had said, “The accommodative stance of monetary policy and comfortable liquidity conditions should support a revival of credit to the productive sectors”.