Oct IIP growth turns negative after 3 months
New Delhi: Industrial production entered the negative territory after three months, contracting by 1.8 percent in October this year mainly due to poor performance of the manufacturing sector.
Factory output, as measured in terms of the Index of Industrial Production (IIP), grew by 8.4 per cent in October last year.
Meanwhile, IIP growth for September this year has been revised marginally to 1.96 percent from the provisional estimate of 2 percent.
IIP dipped by 1.8 percent in June, 2013.
According to data released by the government, industrial output for April-October period remained flat as compared to 1.2 percent in the same period of 2012-13.
The manufacturing sector, which constitutes over 75 percent of the index, declined by 2 per cent in October as against a growth of 9.9 percent a year ago.
During April-October, the sector's output contracted 0.3 percent compared to a growth of 1.1 percent in same period last year.
The mining sector, with a weight of about 14 percent in IIP, also saw a contraction of 3.5 percent in October as against a dip of 0.2 percent in the same month last fiscal.
During April-October, the output shrank by 2.7 percent as against a contraction of one percent.
Power generation, however, posted a growth of 1.3 percent in the month under review compared to 5.5 percent a year ago. Expansion in power generation was at 5.3 percent in April-October as compared to 4.7 percent in the same period last year.
In terms of industries, 10 out of 22 industry groups in the manufacturing sector have shown negative growth during the month of October.
Capital goods production, a barometer of demand, showed a growth of 2.3 percent in October 2013 compared to 7 per cent in the same month a year ago. The segment declined by 0.2 percent in April-October as against a sharp contraction of 11.6 percent in the comparable period.
The consumer durables segment contracted by 12 percent in October as against a growth of 16.7 percent in the same month last year.
During April-October, the segment declined by 11.2 percent compared to a growth of 5.7 percent the same period last year.
The growth in consumer non-durables sector was 1.8 percent in the month under review as against 11.2 percent in October last year. During April-October, the segment's growth was 6.7 percent compared to 2.8 percent in the same period last year.
Overall, the consumer goods output declined by 5.1 percent in October compared to a growth of 13.8 percent in the same month last year.
During April-October, the consumer goods output contracted by 1.8 percent compared to 4.2 percent growth in the corresponding period last year.
Intermediate goods segment expanded at a rate of 1.8 percent in October compared to 9.6 percent in same month last year. During April-October, the segment grew by 2.5 percent compared to 2.3 percent in the seven month period last year.
The basic goods segment declined by 1.6 percent in October compared to 4.3 percent growth in same month last year. During April-October the segment grew by 0.7 percent as against 2.9 percent growth in seven months period a year ago.