Industrial production grows at subdued 0.7% in September

New Delhi: Industrial production grew a meagre 0.7 percent in September mainly due to poor show by manufacturing and mining sectors coupled with decline capital goods output. [caption id=“attachment_2606066” align=“alignleft” width=“380”]  Reuters[/caption] The factory output for the April-September period of the current financial year declined by 0.1 percent compared to 4 percent growth in the year-ago period, as per the data released by Central Statistics Office today. Factory output, as measured in terms of the Index of Industrial Production (IIP), had grown by 3.7 percent in September last year. The manufacturing sector, which constitutes over 75 percent of the IIP index, recorded a low growth of 0.9 percent in September compared to 2.7 percent growth a year ago. In terms of industries, 12 out of 22 groups in the manufacturing sector showed positive growth in September. The capital goods output registered a steep decline of 21.6 percent in the month against a growth rate of 10.1 percent in last year. The mining sector recorded a contraction of 3.1 percent in September as against a growth of 3.5 percent a year ago. Power generation recorded a growth of 2.4 percent in September compared to 11.4 percent growth in the same month a year ago. Growth in output of consumer durables went up to 14 per cent in September compared to 8.5 per cent growth a year ago. The consumer non-durable goods output grew 0.1 per cent in September as against 3.6 per cent contraction a year ago. Overall, consumer goods production recorded a growth 6 percent in September compared to 1.2 percent growth a year ago. As per use-based classification, the growth rates in September 2016 over September 2015 are 4 percent in basic goods and 2.2 percent in Intermediate goods. For the April-September period, manufacturing sector’s output showed contraction by 0.8 percent, as against a growth of 4.2 percent a year ago. Production of capital goods, which are considered as barometer for investment, declined by 21.4 percent in the six-month period compared to a growth of 7.8 percent in year ago period.