NEW DELHI (TIP): Aided by a rebound in capital goods production, the country’s industrial output grew a better-thanexpected 2.6 per cent in July compared with the same period last year. This was a fourmonth high. This brings some cheer to an economy that was slowing down with the Index of Industrial Production contracting in the two months before July, the rupee sliding sharply against the US dollar, and the current account/fiscal deficits widening. A marginally lower retail inflation in August, at 9.52 per cent against 9.64 per cent in July, also improved the sentiment. However, the new data — released on September 19 after market hours — may not be compelling enough for the Reserve Bank of India to reduce repo rates in its monetary policy review on September 20, say economy watchers. Meanwhile, the IIP for June contracted only 1.78 per cent and not 2.2 per cent, as provisionally reported. It contracted by 2.8 per cent in May.