Growth in the Index of Industrial Production (IIP) (year-on-year) contracted 0.1 per cent in August from 4.7 per cent in July, due to contractions in the output of mining and electricity, while manufacturing output also recorded a sharp deceleration during the month.
According to data released by the National Statistical Office (NSO) on Friday, growth in mining output contracted to -4.3 per cent during the month, compared to 3.8 per cent in the preceding month. Similarly, electricity output contracted to -3.7 per cent from 7.9 per cent. Manufacturing output decelerated to 1 per cent from 4.4 per cent in July.
During April-August 2024, the IIP had grown by 4.2 per cent as compared to 6.2 per cent in the corresponding period of the previous fiscal year.
Data showed that 11 out of 23 manufacturing sectors in the IIP, such as food products, beverages, paper, coke, and refined products, among others, registered a contraction in output growth during August.
Meanwhile, output in use-based categories such as capital goods (0.7 per cent), intermediate goods (3 per cent), infrastructure goods (1.9 per cent), and consumer durables (5.2 per cent) decelerated during the month.
On the other hand, output in primary goods (-2.6 per cent) and consumer non-durables (-4.5 per cent) contracted during the month.
This poor showing by use-based categories reflects skewed demand in the economy.
First Published: Oct 11 2024 | 5:54 PM IST
