IIP slips to 3 month low of 4.3%

• HDFC
• 23 Oct 2018
• Knowledge Centre

HDFC, Tester

Industrial production growth slipped to a three-month low of 4.3% in August 2018. This was largely due to a sharp decline in the mining sector output and poor off-take of capital goods.

 

According to the Central Statistics Office (CSO) data, the industrial production, measured in terms of Index of Industrial Production (IIP), was 4.8% in August 2017. Mining sector production contracted by 0.4% in Aug-18, as compared to a growth of 9.3%in the year-ago period.

 

The capital goods output growth decelerated to 5% during the month from an expansion of 7.3%in the year-ago period. The IIP growth is the lowest since May 2018 when industrial production grew at 3.9%. Industrial production expanded by 6.8%in June 2018 and 6.5%in July 2018.

 

The manufacturing sector output grew at 4.6%in Aug-18, as compared to 3.8%a year ago. Power generation grew at 7.6%in the month, as against 8.3%in the year-ago period. In terms of industries, 16 out of 23 industry groups in the manufacturing sector have shown positive growth during August 2018 as compared to the corresponding month of the previous year.