January IIP contracts 1.5% on disappointing manufacturing, capital goods performance

New Delhi: Showing sluggishness in the economy, industrial production contracted by 1.5 percent in January -- its third straight month of drop -- due to poor performance of manufacturing sector and lower offtake of capital goods.

Factory output measured in terms of Index of Industrial Production (IIP) had declined by 3.4 percent in November and 1.2 percent in December, according to the data released by Central Statistics Office (CSO).




The index had registered a growth of 2.8 per cent in January last year, it said.

During April-January, industrial output growth remained flat at 2.7 percent compared to the year ago period.

The decline in January has been primarily on account of a massive drop in output of capital goods, which showed a contraction of 20.4 percent in January compared to a growth of 12.4 percent in the same month a year ago.

The manufacturing sector, which accounts for over 75 percent of the index, declined by 2.8 percent against a growth of 3.4 percent in January 2015.

However, the mining sector showed an improvement, logging a growth of 1.2 percent in the month as against a contraction of 1.8 percent in same month a year ago.

Power generation showed acceleration, growing by 6.6 percent as against 3.3 percent growth year ago.

As per used based classification, basic goods reported a marginal increase of 1.8 percent as against a growth of 4.8 percent last year.

The consumer goods output remained stagnant as against 1.9 percent contraction.

Consumer durables, however, showed growth of 5.8 percent in January as against a contraction of 5.7 percent during the same month last fiscal.

However, the consumer non-durable segment showed a contraction of 3.1 percent in January as against a growth of 0.3 percent in the corresponding month.

In terms of industries, 10 out of the 22 industry groups in the manufacturing sector showed negative growth during January.


Updated Date: Mar 11, 2016 18:53 PM

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