(Repeats item ahead of data)
* For full poll data click on * Industrial output likely grew 1.1 pct yoy in Aug * Data due on Friday, Oct 12 around 0530 GMT
BANGALORE, Oct 9 (Reuters) - India's factory output likelygrew a modest 1.1 percent annually in August after barelygrowing at all in July, indicating weak domestic and globaldemand, a Reuters poll showed.
The index of industrial production (IIP) , whichmeasures output at factories, mines and utilities in India,likely inched up a median 1.1 percent year-on-year in August,after posting a negligible 0.1 percent growth in July. The dataare due on Friday, Oct 12 around 0530 GMT.
Forecasts from the survey of 26 economists ranged from acontraction of 6 percent to growth of 2.5 percent.
"There's nothing very greatly positive about the (IIP)number. At this particular point in time, it is more statisticalthan anything else," said Siddhartha Sanyal, Barclays Capitaleconomist who expects output to grow by 2 percent in August.
Sanyal said his growth forecast reflected a low year-agocomparison rather than an improvement in economic conditions.
Infrastructure output , which makes up nearly 38percent of factory output, grew just 2.1 percent annually inAugust, data released at the end of September showed.
The August factory output poll's median suggests thatfactory conditions will remain fragile.
"I think it's (industrial production) going to be prettystagnant in the next several months and there might be a slightpick-up next year, hopefully, but nothing dramatic," saidCapital Economics' senior economist Andrew Kenningham, whoforecasts a stagnation in factory output for August.
Recent economic surveys suggest that slow global growth anduncertainties surrounding the euro zone debt crisis willcontinue to weigh on factories worldwide and challenge a globaleconomy that is trying to outrun recession.
India's exports have fallen annually in five of the past sixmonths as lack of demand from key destinations such as the U.S.and Europe has hurt trade.
The Indian economy faces a multitude of challenges. Growthis languishing near a three-year low of 5.5 percent in thequarter to June. Still, while inflation remains stubbornly high,the Reserve Bank of India looks unlikely to ease monetary policysoon.
A hike in diesel prices, part of a package of reforms thatthe government launched in mid-September to revive the economy,w ill likely keep inflation high in October and dampen hopes ofan interest rate cut.
"I think they won't cut rates until next year though it ispossible that they will have to do something in...response towhat the government has done," Kenningham said.
(Reporting by Deepti Govind; Editing by Eric Meijer)
Keywords: INDIA OUTPUT/POLL