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Factory output growth spurts to 3.8 per cent in June

Factory output growth spurts to 3.8 per cent in June

The June IIP touched a 4-month high mainly due to a rise in government spending.

Photo: Reuters Photo: Reuters

The factory output growth in June gathered pace with the Index of Industrial Production (IIP) spurting to 3.8 per cent in June against 4.3 per cent a year ago.

The June IIP touched a 4-month high mainly due to a rise in government spending. The May IIP stood at 2.7 per cent. It had grown at a rate of 3.35 per cent in April, and 2.5 per cent in March. The factory output growth was recorded at 4.9 per cent in February. For the first quarter (April-June) of the current fiscal, the industrial production is at 3.2 per cent, as compared to 4.5 per cent growth in the year-ago period.

Further, the growth in factory output was led by the manufacturing sector, which expanded by 4.6 per cent in June against 2.2 per cent in the month before. While mining output fell 0.3 per cent, that for electricity was up 1.3 per cent.

Finance Secretary Rajiv Mehrishi said that the IIP data indicates recovery in growth.

The data on IIP was released by the Ministry of Statistics and Programme Implementation on Wednesday evening.

The output of capital goods, a barometer of investment, contracted by 3.6 per cent compared to 23.3 per cent growth in the same month last year. For the April-June period, the capital goods production is up at 1.5 per cent, compared to 13.7 per cent growth in the corresponding period a year ago. In terms of industries, 16 out of 22 groups in the manufacturing sector have shown positive growth in June, as compared to the same month of last fiscal.

Power generation growth too slowed to 1.3 per cent in June compared to 15.7 per cent in the same month a year ago. During April-June, it grew at 2.3 per cent compared to 11.3 per cent in the three month period a year ago. Overall consumer goods output grew by 6.6 per cent in June compared to a contraction of 8.8 per cent in the month a year ago.

During April-June the consumer goods output grew by 2.4 per cent compared to a decline in production by 3.2 per cent. The consumer durables goods output grew at 16 per cent in June compared to a contraction of 23.3 per cent in the month a year ago. In April-June the segment grew by 3.7 per cent compared to a contraction of 9.5 per cent in the period last year. The consumer non-durable goods grew by 1.3 per cent in June compared to 1.9 per cent growth in the same month a year ago.

During April-June, the output of these goods grew by 1.6 per cent compared to 1.3 per cent a year ago. The basic goods output grew by 5.1 per cent in June, compared to 10.2 per cent a year ago, whereas the basic goods output grew by 0.8 per cent compared to 2.6 per cent in the same month last year.