Industrial output growth slows to 2.1% in June
Industrial output grew by 2.1 percent in June, although down from 4.2 per cent a year ago, on account of poor show by manufacturing and heavy contraction in capital goods production.
New Delhi: Industrial output grew by 2.1 percent in June, although down from 4.2 percent a year ago, on account of poor show by manufacturing and heavy contraction in capital goods production.
On cumulative basis, the factory output in the April-June quarter grew by 0.6 percent compared to 3.3 percent growth in the year-ago period.
The June growth was however higher than 1.1 percent (revised from 1.2 percent provisionally) in May.
Factory output, measured in terms of the Index of Industrial Production (IIP), showed that the manufacturing sector that constitutes over 75 percent of the index saw a meager growth of 0.9 percent in June compared to 5.2 percent a year ago.
For the April-June quarter, this sector's output showed contraction by 0.7 percent, as against a growth of 3.7 percent a year ago.
The capital goods output registered a steep decline of 16.5 percent in June over a contraction of 2 percent in last year. In April-June, the production of these goods, which are considered as barometer for investment, declined by 18 percent compared to a growth of 2 percent in year ago period.
Growth in output of consumer durables decelerated to 5.6 percent in June compared to 16.1 percent a year ago. The consumer non-durable goods also recorded low growth of 1 percent in June compared to 2.3 percent a year ago.
Overall, consumer goods production recorded a growth 2.8 percent in June compared to 7.2 percent a year ago. However, the power generation recorded an impressive growth of 8.3 percent in June compared to 1.2 percent in the same month a year ago.
The mining sector recorded a growth of 4.7 percent in June year as against a contraction of 0.4 percent a year ago. In terms of industries, 18 out of 22 industry groups in the manufacturing sector have shown positive growth during the month of June.
As per Use-based classification, the growth rates in June 2016 over June 2015 are 5.9 percent in Basic goods, (-)16.5 percent in Capital goods and 6.1 percent in Intermediate goods.
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