Industrial output dips 0.6% in Dec; dampens recovery process
New Delhi: Indicating persistent sluggishness in the economy, industrial output contracted to a three-month low of 0.6 percent in December due to poor performance of manufacturing and mining sectors and decline in production of capital as well as consumer goods.
The industrial output, as measured by the Index of Industrial Production (IIP) had grown by 2.7 percent in December, 2011.
Industrial production growth stood at 0.7 percent during April-December period of this fiscal, down from 3.7 percent in the same period of 2011-12, according to official data released here Tuesday.
Meanwhile the decline in industrial output for November 2012 has been revised downwards to 0.84 percent from a contraction of 0.1 percent in the month as per the provisional estimates released last month.
The growth in industrial output for October last year has, however, been revised upward to 10.66 percent from the first revision of 8.3 percent released last month.
The IIP in December slumped to a three month low mainly due to decline in factory output by 0.7 percent in September.
The manufacturing sector, which constitutes over 75 percent of the index, registered a contraction of 0.7 percent in December in 2012, as against a growth of 2.8 percent in 2011.
The growth in the output of the key sector remained low at 0.7 percent in April-December last year as against 4 percent growth in the same period of 2011.
The mining output in December last year contracted by 4 percent compared to a decline in production by 3.3 percent in the same month in 2011.
In April-December, the production in the sector declined by 1.9 percent, against a contraction of 2.6 percent in the year-ago period.
Capital goods output declined by 0.9 percent in December, as against a contraction of 16 percent in same month of 2011.
Capital goods output also contracted in the April-December period by 10.1 percent, as against a dip of 2.9 percent in the same period of 2011-12.
Consumer goods output also saw a contraction of 4.2 percent in December as against a growth in production by 10.1 percent. In the April-December period of this fiscal, the growth in the segment was 2.6 percent as compared to 5.7 percent in the same period of 2011-12.
The dip in the output of consumer durables stood at 8.2 percent in December, as compared to a growth of 5.1 percent in the same month of 2011.
The growth in the output of these goods was at 3.7 percent in April-December 2012, compared to 5.1 percent in same period previous fiscal.
The consumer non-durables output dipped by 1.4 percent in December, as against a growth of 13.8 percent in the same month a year-ago. This segment grew by 1.7 percent in the nine-month period of this fiscal, as against 6.1 percent in the same period of 2011-12.
The intermediate goods production also contracted by 0.1 percent in December, 2012 compared to a decline in output by 1.5 percent in same month a year ago.
During the April-December period, this segment recorded a growth of 1.6 percent, compared to a contraction of 0.7 percent in the first nine months of last fiscal.
The basic goods output grew by 2.6 percent in December as compared 5.5 percent in the same month of 2011. During the April-December period of this fiscal, output of these goods rose 2.7 percent compared to 6.3 percent in the nine-month period a year ago.
Power generation grew by 5.2 percent in December last year, as against 9.1 percent in same month of 2011. The electricity generation in the April-December period this fiscal stood at 4.6 percent, as against 9.4 percent in a year-ago period.
In terms of industries, 12 out of 22 groups in the manufacturing sector have shown negative growth in December, 2012 as compared to the same month in 2011.