Industrial growth slips to 7-month low of 3.2% in May on sluggish performance of manufacturing and power sectors
Factory output growth measured in terms of the Index of Industrial Production (IIP) was revised down to 4.8 percent in April from previous estimates of 4.9 percent
New Delhi: Industrial production growth slipped to a seven-month low of 3.2 percent in May mainly due to sluggish performance of manufacturing and power sectors coupled with a poor offtake of fast moving consumer goods (FMCG).
Factory output growth measured in terms of the Index of Industrial Production (IIP) was revised down to 4.8 percent in April from previous estimates of 4.9 percent, according to the data released by the Central Statistics Office (CSO) on Thursday.
The IIP had expanded by 2.9 percent in May last year. The previous low of industrial production growth was 1.8 percent in October 2017.
During April-May this fiscal, the IIP recorded a growth of 4.4 percent as compared to 3.1 percent in same period year ago.
The manufacturing sector, which constitutes 77.63 percent of the index, grew by just 2.8 percent in May, marginally up from 2.6 per cent in the corresponding period last year.
Power generation growth decelerated sharply to 4.2 percent during the month as compared to a high of 8.3 per cent year ago.
The mining sector output recorded an impressive growth of 5.7 percent in May as against 0.3 percent in May last year.
The FMCG sector was the worst performer among the user based goods segment, as its output declined by 2.6 percent as against a growth of 9.7 percent year ago.
As per use-based classification, the growth rates in May 2018 over May 2017 are 5.7 percent in primary goods, 7.6 percent in capital goods, 0.9 per cent in intermediate goods and 4.9 percent in infrastructure/construction goods . The consumer durables and have recorded growth of 4.3 percent in the month under review.
Industry group ‘manufacture of computer, electronic and optical products' has shown the highest positive growth of 27 percent followed by 21.1 percent in ‘manufacture of motor vehicles, trailers and semi-trailers' and 13.2 percent in ‘manufacture of furniture.
On the other hand, the industry group ‘other manufacturing' has shown the highest negative growth of (-) 31.9 percent followed by (-) 15.6 percent in ‘manufacture of tobacco products' and (-) 12.8 percent in ‘manufacture of wearing apparel, it said
In terms of industries, 13 out of 23 industry groups in the manufacturing sector have shown positive growth during May 2018 as compared to the corresponding month of the previous year, an official release said.