New Delhi, Nov 28 (IANS): Ratings agency ICRA expects a contraction in core sector as well as Index of Industrial Production for October as economic indicators revealed a mixed trend.

According to the ratings agency's monthly macro update and review of October 2019: "Early economic indicators have revealed mixed trends in October 2019, with 11 of our expanded set of 18 indicators displaying sequential improvement in their year-on-year (YoY) performance."

"This sub-set includes hydroelectricity generation, refinery production, domestic airlines' passenger traffic, non-oil merchandise exports, petrol and ATF consumption, and bank deposits and credit."

On the contrary, Indian Economy: Month In Review Oct 2019, showed that performance of seven of the 18 indicators worsened in October 2019 from September 2019.

"Fewer working days with an earlier onset of the festive season in 2019 relative to 2018, contributed to a weaker performance of sectors such as the output of passenger vehicles (PV), motorcycles and scooters, which seems to have had a knock-on impact on some indicators of freight and demand for thermal electricity," ICRA said.

"Moreover, 10 of the 18 indicators recorded a contraction in October 2019."

Accordingly, both the core sector as well as the Index of Industrial Production to report a contraction for that month, the review said.

"Looking ahead, a favourable base effect as well as a post-monsoon pickup in production may push up growth in various sectors in November 2019," the review added.