Industrial production growth slumps to 5-month low of 4.4% in March
Index of Industrial Production (IIP) posted a growth of 4.4 per cent in March 2018. This is the slowest industrial output has grown in the past five months. The slowdown happened due to decline in capital goods production and mining activity.
Index of Industrial Production (IIP) posted a growth of 4.4 per cent in March 2018. This is the slowest industrial output has grown in the past five months. The slowdown happened due to decline in capital goods production and mining activity, shows the data released by Central Statistics Office (CSO).
The IIP for the financial year 2017-18 also slipped to 4.3 from 4.6 in the previous fiscal. The industrial output index grew by 4.4 per cent in March 2017, same as in the corresponding month this year. The last low in IIP was at 1.8 per cent registered in October 2017.
Manufacturing sector, which constitutes over 77 per cent of the index, grew at 4.4 per cent in March as compared to 3.3 per cent in the same month a year ago. Capital goods output, however, declined by 1.8 per cent during March as compared to a growth of 9.4 per cent in the corresponding period last year.
The output of mining sector decelerated to 2.8 per cent during the month as compared to 10.1 per cent in March 2017. Similarly, power generation too slowed down to 5.9 per cent as against 6.2 per cent in March 2017.
Consumer durables output on the other hand showed an increase of 2.9 per cent as against decline of 0.6 per cent in March 2017. The consumer non-durables segment showed an impressive growth of 10.9 per cent in March as against 7.5 per cent in corresponding month last year.
During 2017-18, the manufacturing sector recorded a growth of 4.5 per cent, marginally up from 4.4 per cent in 2016-17.
The mining sector as well as power generation reported deceleration to 2.3 per cent and 4.6 per cent from 5.3 per cent and 5.4 per cent respectively in 2016-17.