A worker cuts an iron rod inside a steel factory in Noida October 12, 2011. REUTERS/Parivartan Sharma/Files

NEW DELHI (Reuters) - India’s industrial output in June grew at its fastest pace in five months to 7 percent from a year earlier, driven by a pick-up in capital goods manufacturing ahead of the festive season, government data showed on Friday.

Economists surveyed by Reuters had forecast 5.4 percent growth in output compared with a revised 3.9 percent year-on-year increase in May.

Manufacturing, which contributes 78 percent of industrial output, grew 6.9 percent in June compared with a 2.8 percent rise in May.