Industrial output growth gathers pace again, up 2.5% in September

Industrial production growth revived in September, albeit moderated, after slowing down in the previous month, led by higher electricity generation and manufacturing output during the month. The official statistics reveals that the Index of Industrial Production (IIP) grew 2.5 per cent in September.

IIP growth had slowed down to five-month low of 0.4 per cent in August mainly due contraction in manufacturing output and in particular consumer goods.

During the April-September period of 2014-15, IIP grew at 2.8 per cent, against 0.5 per cent in the year-ago period.

The indices for mining, manufacturing and electricity sectors for the month of September 2014 grew 0.7 per cent, 2.5 per cent and 3.9 per cent, respectively, over September 2013. The cumulative growth in the three sectors during April-September 2014-15 over the corresponding period of 2013-14 has been 2.1 per cent, 2 per cent and 10.4 per cent, respectively.

In terms of industries, 15 of the 22 industry groups in the manufacturing sector have shown positive growth during the month. In August, only 11 or half of the 22 industry groups in manufacturing showed positive growth.

As per use-based classification, the growth rates in September 2014 over September 2013 were 5.1 per cent in basic goods, 11.6 per cent in capital goods and 1.8% in intermediate goods. Within the consumer goods basket, consumer durables declined 11.3 per cent while consumer non-durables rose 1.5 per cent, with the overall consumer goods declining 4 per cent.

In August the consumer goods output contracted by 6.9 per cent.

While the decline in output of durables was lower in September, non-durables rose as against de-growth of 0.9 per cent in August.

(Edited by Joby Puthuparampil Johnson)

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