New Delhi: Dashing hopes of a rebound, the industrial output contracted to a four-month low of 0.1 percent in November due to poor performance of manufacturing and mining sectors and decline in production of capital goods.
The industrial output, as measured by the Index of Industrial Production (IIP) dipped from a robust 8.3 percent in October. The decline may prompt the Reserve Bank to consider rate cut in its quarterly review on January 29 to boost growth.
The industrial output had grown by 6 percent in November, 2011. Meanwhile, in July, 2012 it showed a contraction of 0.1 percent.
Factory output growth was 1 percent in April-November period this fiscal, down from 3.8 percent in the same period in 2011-12, according to official data released here today.
Meanwhile, the growth in the industrial production during October last year was revised upward to 8.3 percent, from earlier provisional estimates of 8.2 percent released last month -- highest in previous 16 month.
The manufacturing sector, which constitutes over 75 percent of the index, grew by meagre 0.3 percent in November in 2012, as against a 6.6 percent in 2011.
The output of the key sector remained low at one percent in April-November last year as against 4.2 percent growth in the same period in 2011.
The mining output in November contracted by 5.5 percent compared to a decline in production by 3.5 percent in same month in 2011. The sector's production in April-November also declined by 1.5 percent, against a contraction of 2.4 percent in the year-ago period.
Capital goods output declined by 7.7 percent in November, as against a contraction of 4.7 percent in same month in 2011.
The output of capital goods also contracted in the April-November period by 11.1 percent, as against a dip in production by 0.1 percent in the 2011-12 period.
Power generation grew by 2.4 percent in November, as against 14.6 percent in same month in 2011. The electricity generation in the April-November period this fiscal is 4.4 percent, as against 9.5 percent in a year-ago period.
Consumer goods output growth was 1 percent in November as against 12.8 percent. In the April-November period of this fiscal, the growth in consumer goods was 3.8 percent as compared to 5 percent in the same period of 2011-12.
The growth in output of consumer durables is 1.9 percent in November, as compared to double digit growth of 10.4 percent in the same month in 2011. The growth in the output of these goods remained flat at 5.2 percent in April-November this fiscal.
The consumer non-durables output growth was 0.3 percent in November, as against a 15 percent in the year-ago period. This segment grew by 2.5 percent in the eight month period of this fiscal, as against 4.9 percent in the same period of 2011-12.
The basic goods production growth was 1.7 percent in November, compared to 6.5 percent the year-ago period.
During the April-November period, this segment recorded a growth of 2.8 percent, compared to 6.3 percent in the first eight months of last fiscal.
The intermediate goods output declined by 1.1 percent in November as compared to a growth of 1.3 percent in the same month in 2011. During the April-November period this fiscal, growth in the output of these goods was 1.8 percent compared to a contraction of 0.6 percent in the eight month period a year ago.
In terms of industries, 13 out of 22 groups in the manufacturing sector have shown negative growth in November, 2012 as compared to the same month in 2011.
The industry group Publishing, printing and reproduction of recorded media has shown the highest contraction of 22.1 percent, followed by 21.8 percent in Office, accounting and computing machinery and 18.9 percent in Wood and products of wood & cork except furniture.
On the other hand, the industry group Electrical machinery and apparatus has shown a positive growth of 25.1 percent, followed by 15.7 percent in Luggage, handbags, saddlery, harness and footwear; tanning and dressing of leather products and 15.3 percent in Radio, TV and communication equipment and apparatus.