Q2 GDP slips to 7.1%, fiscal deficit balloons to 104%

After peaking in the first quarter of the current year, growth moderated in the July-September period to 7.1%, as agriculture and industry slowed. Cracks showed up in manufacturing, that slipped to 7.4% in Q2 compared to 13.5% in Q1. Construction clocked 7.8% in Q2 compared to 8.7% in Q1 while agriculture dipped to 3.8% compared to 5.3% in Q1. For most of these sectors, growth in Q1 had been pushed up by a pick-up in activity and a positive base effect since growth same quarter last year was low.