IIP contracts by 4.3% for the second straight month in September – Economic Times

Showing signs of sluggishness in the economy, industrial production diminished by 4.3 percent in
September, registering the weakest performance in seven years due to output decrease in manufacturing, mining and electrical power sectors, as per authorities data launched on Monday.

According to the Central Statistics Office (CSO) data, 4.3 percent contraction is the most affordable in 2011-12 series of Index of Industrial Production, which was unveiled in May 2017. The IIP had declined by 0.7 percent in April, 2012.

Factory output, measured in terms of Index of Industrial Production (IIP), had actually expanded by 4.6 percent in September 2018.

According to the information, contraction in IIP was additional revised downward to 1.4 per cent in August from 1.1 per cent decrease under provisionary quotes released last month.

Throughout April to September, the IIP growth stayed practically flat at 1.3 per cent compared to 5.2 percent in exact same period last fiscal.

A downturn was witnessed in the manufacturing sector, which decreased by 3.9 per cent in September as compared to 4.8 percent growth a year earlier.

The power generation sector output dipped 2.6 percent in September, compared to 8.2 per cent increase a year ago.

Mining output too fell by 8.5 percent in September as against 0.1 per cent climb in the matching month last financial.

Capital products production, which is a barometer of financial investment, decreased by 20.7 per cent in September compared to 6.9 percent hike in the year-ago month.

As per use-based category, the development rates in September 2019 over September 2018 are (-) 5.1 per cent in primary items, 7 percent in intermediate items and (-) 6.4 percent in facilities/ construction Goods.

Consumer durables and consumer non-durables have actually tape-recorded growth of (-) 9.9 percent and (-) 0.4 percent, respectively.

In regards to markets, 17 out of 23 market groups in the manufacturing sector have actually revealed unfavorable development during September 2019 as compared to the same month in 2015.

The industry group ‘manufacture of motor automobiles, trailers and semi-trailers’ has shown the greatest unfavorable growth of (-) 24.8 per cent followed by (-) 23.6 percent in furniture and (-) 22.0 percent in made metal items, other than equipment and equipment.

On the other hand, manufacturing of wood and items of wood & cork, except furnishings; short articles of straw and plaiting products have revealed the greatest favorable growth of 15.5 percent followed by 9.2 percent in fundamental metals.

According to the Central Statistics Office (CSO) data, 4.3 per cent contraction is the most affordable in 2011-12 series of Index of Industrial Production, which was unveiled in May 2017.