India's Industrial growth slips to 4-month low in September
Industrial production grew at the slowest pace in four months at 4.5% in September mainly due to the poor performance of the mining sector and lower offtake of capital goods.
The industrial production measured in terms of Index of Industrial Production (IIP) was 4.1% in September 2017.
Sequentially, the factory output growth for August was revised slightly upward to 4.6% from provisional figure of 4.3%, according to the latest data released by the Central Statistics Office (CSO).
The IIP was recorded at 6.9% and 6.5% in June and July this year, respectively. The previous low was recorded at 3.8% in May this year.
The mining sector output growth decelerated to 0.2% in September as against 7.6% in the year-ago month. Similarly, capital goods output growth slowed to 5.8% in the month from 8.7% a year ago.
However, the data showed that the manufacturing sector recorded a growth of 4.6% in September, up from 3.8% a year ago.
The electricity generation too improved to 8.2% in the month from 3.4% in September 2017.
For April-September 2018, the IIP growth came in at 5.1%. The factory output rise was 2.6% in the same period of the last fiscal.
As per use-based classification, the growth rates in September 2018 over September 2017 are 2.6% in primary goods, 1.4% in intermediate goods and 9.5% in infrastructure/construction goods. The consumer durables and consumer non-durables have recorded growth of 5.2% and 6.1%, respectively.
In terms of industries, 17 out of 23 industry groups in the manufacturing sector have shown positive growth during September 2018 as compared to the corresponding month of the previous year.
The industry group ‘manufacture of furniture’ has shown the highest positive growth of 32.8% followed by 20.9% in ‘manufacture of wearing apparel’ and 20.6% in ‘manufacture of wood and products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials’
On the other hand, the industry group ‘printing and reproduction of recorded media’ have shown the highest negative growth of (-)12.9% followed by (-)10.7% in ‘other manufacturing’ and (-)7.3% in ‘manufacture of tobacco products’
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