Factory output growth rebounds

In what may be a double boost to the country’s economy, the latest industrial production data showed remarkable recovery while retail inflation eased on an annual basis.

Published: 13th October 2017 07:46 AM  |   Last Updated: 13th October 2017 07:46 AM   |  A+A-

By Express News Service

NEW DELHI: In what may be a double boost to the country’s economy, the latest industrial production data showed remarkable recovery while retail inflation eased on an annual basis. Factory output growth measured in terms of Index of Industrial Production (IIP) expanded at a nine-month high of 4.3 per cent in August 2017 thanks to robust performance of mining and power sectors coupled with higher capital goods output, government data released on Thursday showed.

The number is notable compared with that for the preceding month at 0.94 per cent and for August 2016 at 4 per cent. The last time the index showcased such a high growth was in November 2016 at 5.7 per cent.
IIP growth during April-August 2017 was 2.2 per cent, down from 5.9 per cent in the first five months of the previous financial year. The government also revised the July IIP number to 0.94 per cent from 1.2 per cent in the provisional estimates released last month.

However, the output growth in manufacturing sector, which constitutes 77.63 per cent of the index, slowed to 3.1 per cent in August from 5.5 per cent a year ago. The output of the mining and electricity sectors grew at 9.4 per cent and 8.3 per cent compared to August 2016. The growth rates in August 2017 over August 2016 are 7.1 per cent in primary goods, 5.4 per cent in capital goods, (-) 0.2 per cent in intermediate goods and 2.5 per cent in  construction goods. Consumer durables and consumer non-durables sectors recorded growth of 1.6 per cent and 6.9 per cent, respectively.

Ten out of 23 industry groups in the manufacturing sector have shown positive growth during August 2017. Meanwhile, retail inflation eased to 3.28 per cent in September compared to 4.39 per cent in the same month last year. August inflation was also revised downwards to 3.28 per cent from 3.36 per cent. Overall food inflation moderated to 1.25 per cent in September from 1.67 per cent in the previous month.
The rate of price in vegetables softened to 3.92 per cent (from 9.97 per cent in August). On the other hand, the inflation print rose in the fuel and light category to 5.56 per cent. It was 3.66 per cent in August.

Stay up to date on all the latest Business news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.