IIP output enters negative zone first time in 4 years, contracts 0.1% in June

New Delhi: Industrial output entered the negative territory in June contracting by 0.1 percent, a four year low, mainly due to decline in manufacturing and capital goods sectors.

Besides, segments like mining, power generation, infrastructure/construction goods and consumer durables recorded poor performance.

Factory output, measured in terms of Index of Industrial Production, grew 8 percent in June 2016, according to the data released by the Central Statistics Office on Friday.

Reuters

Reuters

On a quarterly basis, factory output growth during April-June slowed down to 2 percent from 7.1 percent in the corresponding period last year.

The IIP grew by 3.4 percent in April and 2.8 percent May as per the revised estimates released on Friday.

Manufacturing sector, which constitutes over 77 percent of the index, showed a decline of 0.4 percent in June as compared to a growth of 7.5 percent in the same month last year.

The output of mining and electricity sectors during the month decelerated to 0.4 percent and 2.1 percent from 10.2 percent and 9.8 percent respectively in June last year.

Capital goods output, which is the barometer of investment, declined by 6.8 percent from a growth of 14.8 percent a year ago.

Similarly, the output of primary goods and intermediate goods during the month declined by 0.2 percent and 0.6 percent as against growth of 8.2 percent and 6 percent respectively during June last year.

The Consumer durables and Consumer non-durables have recorded growth of (-) 2.1 percent and 4.9 percent respectively.

In terms of industries, 15 out of 23 industry groups in the manufacturing sector have shown negative growth during the month of June 2017 as compared to the corresponding month of the previous year.


Updated Date: Aug 11, 2017 20:03 PM

Also Watch

Social Media Star: Abhishek Bachchan, Varun Grover reveal how they handle selfies, trolls and broccoli
  • Monday, July 16, 2018 It's a Wrap: Soorma star Diljit Dosanjh and Hockey legend Sandeep Singh in conversation with Parul Sharma
  • Monday, July 16, 2018 Watch: Dalit man in Uttar Pradesh defies decades of prejudice by taking out baraat in Thakur-dominated Nizampur village
  • Monday, July 16, 2018 India's water crisis: After govt apathy, Odisha farmer carves out 3-km canal from hills to tackle scarcity in village
  • Sunday, July 15, 2018 Maurizio Sarri, named as new Chelsea manager, is owner Roman Abramovich's latest gamble in quest for 'perfect football'

Also See