Slowdown Blues: Factory output declines 1.1% in August as manufacturing slumps
The manufacturing sector reported a 1.2 per cent decline in output during August, as opposed to a growth of 5.2 per cent in the corresponding month last year. It contributes 77 per cent to the IIP on its own
Industrial output in August declined by 1.1 per cent due to slump in manufacturing and electrcity generation sectors, government data released on Friday showed. The cumulative growth for the period April-August 2019 over the corresponding period of the previous year stands at 2.4 per cent, down from 5.3 per cent in the corresponding period of the last fiscal. The Index of Industrial Production (IIP) had expanded by 4.8 per cent in August 2018.
As per the government data, manufacturing sector reported a 1.2 per cent decline in output during August, as opposed to a growth of 5.2 per cent in the corresponding month last year. The manufacturing sector contributes 77 per cent to the IIP.
Electricity generation declined by 0.9 per cent in August as against a growth of 7.6 per cent in the same month last year. Mining sector did not show any changes with a growth rate of 0.1 per cent in August.
The IIP estimates for July 2019 have also undergone the first revision and those for May 2019 have undergone the final revision in the light of the updated data received from the source agencies, the statement said.
In terms of industries, 15 out of the 23 industry groups in the manufacturing sector registered negative growth during the month of August 2019 as compared to the corresponding month of the previous year.
As per use-based classification, primary goods grew at 1.1 per cent in August 2019, whereas Capital goods reported a de-growth of 21 per cent. Intermediate goods showed a growth of 7 per cent, whereas infrastructure and construction goods declined by 4.5 per cent. Consumer durables showed a decline of 9.1 per cent, while consumer non-durables grew by 4.1 per cent.