Millennium Post

Poor show continues: May factory output contracts 1.6%

Reflecting a persistent slowdown, industrial production in May contracted by 1.6 per cent, lowest in the past 11 months, on account of dismal performance by the manufacturing and mining sectors.

The Industrial of Index Production (IIP) was 1.9 per cent in April and 2.5 per cent in May last year, as per the data released by Central Statistical Organisation.

During April-May the factory output measured in terms of IIP worked out to be meagre 0.1 per cent, down from 0.6 per cent in the corresponding period last fiscal.

Manufacturing sector, which constitutes over 75 per cent of the index, contracted by 2 per cent in May as against a growth of 2.6 per cent in the year-ago month.The mining sector output too declined by 5.7 per cent in May, compared to a dip in the production by 0.7 per cent in the year-ago period.The capital goods output also saw a contraction of 2.7 per cent during the month, as compared to a decline in production by 8.6 per cent in the year-ago period.

Power generation, however, reported an increase of 6.2 per cent in May as against a growth of 5.9 per cent in same month last year. Overall, 11 of the 22 industry groups in manufacturing sector have shown positive growth in May.
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