High interest rate, deficient monsoon and inflation will weigh on industrial output in three months through September, according to newly published CII ASCON survey.

The survey, which covered 103 sectors, revealed that fewer manufacturers are expecting 'excellent' performance in the July to September quarter. The percentage of manufacturers expecting 'excellent' growth for the second quarter of the current fiscal slipped to just 3.8 per cent, from 23.8 per cent in the corresponding period of last year.

More than half (51.4 per cent) of the total number of manufacturers surveyed this year expect lower growth. Last year, 44.7 per cent of companies studied had estimated lower growth.

The study held a number of factors responsible for the lower industrial output, such as high interest rate, inflation, poor monsoon, broadening fiscal deficits and slowing global economy.

The study urged the government and RBI to take immediate policy actions to arrest further fall in industrial output in the current quarter.

The CII ASCON said in it report, "The urgency that is required to announce confidence building measures at once, along with reduction in policy rates by RBI."

The dismal outlook for the July-September quarter has surfaced on the heels of a dim growth in the industrial output in the previous quarter. In the April-June quarter industrial output shrank by 0.1 per cent.