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Bad news on three fronts dampens Diwali mood

Bad news on three fronts dampens Diwali mood
Industrial production contracted by 0.4 per cent in September due to dismal show by manufacturing sector and decline in consumer as well as capital goods output.Growth in overall factory output, as measured by the Index of Industrial Production (IIP), was 2.5 per cent in September last year.Industrial output in April-September this fiscal was 1 per cent, down from 5.1 per cent in the same period in 2011-12, as perr official data released on Monday.

Meanwhile the industrial production growth rate for August this year was revised downward to 2.3 per cent from earlier provisional estimates of 2.7 per cent released last month.  The output of manufacturing sector, which constitutes over 75 per cent of the index, contracted by 1.5 per cent in September, as against a growth of 3.1 per cent in the same month last year.

The production in the manufacturing sector in April- September this year also dipped by 0.4 per cent as against a growth of 5.5 per cent growth in the same period in 2011-12.

Capital goods output declined by 12.2 per cent in September, as against a contraction of 6.5 per cent in September, 2011. Output of capital goods contracted in the April-September period by 13.7 per cent, as against growth of 4.6 per cent in the 2011-12 period.

However, mining output in September grew by 5.5 per cent as against a contraction of 7.5 per cent in same month last year. The sector’s production in April-September was flat as compared to a contraction of 1.6 per cent in a year ago. Consumer goods production was down by 0.3 per cent in September as compared to a growth of 5.7 per cent in same month last year. In April-September period of this fiscal, the growth in the segment was 2.5 per cent, compared to 4.7 per cent in the first half of last fiscal. . In all, 12 of the 22 industry groups in the manufacturing sector showed growth in August. Consumer durables production declined by 1.7 per cent in September, compared to growth of 8.9 per cent in the same month last year. The output of these goods registered a growth of 3.8 per cent during April-September, as against 5.3 per cent in the same period last fiscal. The consumer non-durables output growth was 1.1 per cent in September, as against 2.7 per cent in the same month last year. This segment grew by 1.4 per cent in first half of this fiscal, as against 4 per cent in the same period of 2011-12.

The basic goods production growth slowed to 3.5 per cent in September, as against 5.3 per cent the year-ago period. During the April-September period, this segment recorded a growth of 2.9 per cent, compared to 7.3 per cent in the first half of last fiscal. Power generation growth rate slowed to 3.9 per cent in September, compared to 9 per cent in the same month a year ago. The segment grew by 4.6 per cent in the April-September period this fiscal, as against 9.4 per cent in 2011-12.
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