India's August industrial output grows at 0.4%
Industrial production growth slowed down to five-month low of 0.4% in August mainly due contraction in manufacturing output and lower offtake of consumer goods.business Updated: Oct 10, 2014 21:29 IST
Industrial production growth slowed down to five-month low of 0.4% in August mainly due contraction in manufacturing output and lower offtake of consumer goods.
The factory output, as measured by the Index of Industrial Production (IIP), had also grown at a meagre rate of 0.4% in August, 2013.
IIP for July was also revised downwards to 0.41% from the provisional estimates of 0.5% released last month, according to the data released by the Central Statistics Office on Friday.
During the April-August period of 2014-15, IIP grew at 2.8%, as against flat production in same period in the previous fiscal.
According to the IIP data, manufacturing -- which constitutes over 75% of the index -- contracted by 1.4% in August, compared to 0.2% decline in output a year ago. For April-August, the sector grew at 1.8%, compared to 0.1% contraction in the year-ago period.
The consumer goods output contracted by 6.9% in August against 0.9% decline logged a year ago. For April-August, the segment showed contraction of 4.9%, compared to a decline of 1.6% in the same period of 2013-14.
The consumer durables segment declined by 15% in August, as against a dip of 8.3% a year ago. For April-August, it declined 12.9% as against a dip of 11.2% in the five month period of last fiscal.
Consumer non-durable goods output too declined by 0.9% in August, compared to 5.4% growth in same month last year. During April-August, the segment grew by 0.9% compared to 6.8% growth in same period last fiscal.
Overall, 11 of the 22 industry groups in manufacturing showed positive growth in August.
The production of capital goods, a barometer of demand, contracted by 11.3% in August, against 2% decline in same month of last year, the CSO data showed.
The mining sector grew by 2.6% in August against a dip of 0.9% a year ago.
Power generation, however, increased by 12.9% in the month under review compared to 7.2% growth a year ago.
Production of intermediate goods expanded by just 0.3% in August, compared to 3.8% growth a year ago.
Basic goods output grew 9.6% in August against a growth of 0.9% a year ago.