Factory output shrinks for third month, dips 1.5% in January

  • PTI, New Delhi
  • Updated: Mar 11, 2016 20:56 IST

Showing sluggishness in the economy, industrial production contracted by 1.5% in January -- its third straight month of drop -- due to poor performance of manufacturing sector and lower offtake of capital goods.

Factory output measured in terms of Index of Industrial Production (IIP) had declined by 3.4% in November and 1.2% in December, according to the data released by Central Statistics Office (CSO).

The index had registered a growth of 2.8% in January last year, it said. During April-January, industrial output growth remained flat at 2.7 compared to the year ago period.

The decline in January has been primarily on account of a massive drop in output of capital goods, which showed a contraction of 20.4% in January compared to a growth of 12.4% in the same month a year ago.

The manufacturing sector, which accounts for over 75% of the index, declined by 2.8% against a growth of 3.4% in January 2015. However, the mining sector showed an improvement, logging a growth of 1.2% in the month as against a contraction of 1.8% in same month a year ago.

Power generation showed acceleration, growing by 6.6% as against 3.3% growth year ago. As per used based classification, basic goods reported a marginal increase of 1.8% as against a growth of 4.8 last year.

The consumer goods output remained stagnant as against 1.9% contraction. Consumer durables, however, showed growth of 5.8% in January as against a contraction of 5.7% during the same month last fiscal.

However, the consumer non-durable segment showed a contraction of 3.1% in January as against a growth of 0.3% in the corresponding month. In terms of industries, 10 out of the 22 industry groups in the manufacturing sector showed negative growth during January.

also read

Tata Sons, Ratan Tata knew about Welspun Power deal: Cyrus Mistry
Show comments