India's IIP contracted by 0.4% in September due dismal show by manufacturing sector and decline in consumer as well as capital goods output
New Delhi: Indicating persistent sluggishness in the economy, India's industrial production contracted by 0.4% in September due dismal show by manufacturing sector and decline in consumer as well as capital goods output, reports PTI.
Growth in overall factory output, as measured by the Index of Industrial Production (IIP), was 2.5% in September last year.
Industrial output in the April-September period this fiscal was 1%, down from 5.1% in the same period in 2011-12, according to the official data released on Monday.
Meanwhile the industrial production growth rate for August this year was revised downward to 2.3% from earlier provisional estimates of 2.7% released last month.
The output of manufacturing sector, which constitutes over 75% of the index, contracted by 1.5% in September, as against a growth of 3.1% in the same month last year.
The production in the manufacturing sector in April- September this year also dipped by 0.4% as against a growth of 5.5% growth in the same period in 2011-12.
Capital goods output declined by 12.2% in September, as against a contraction of 6.5% in September, 2011.
Output of capital goods contracted in the April-September period by 13.7%, as against growth of 4.6% in the 2011-12 period.
However, mining output in September grew by 5.5% as against a contraction of 7.5% in same month last year. The sector's production in April-September was flat as compared to a contraction of 1.6% in a year ago.
Consumer goods production was down by 0.3% in September as compared to a growth of 5.7% in same month last year. In April-September period of this fiscal, the growth in the segment was 2.5%, compared to 4.7% in the first half of last fiscal.
In all, 12 of the 22 industry groups in the manufacturing sector showed growth in August.
Consumer durables production declined by 1.7% in September, compared to growth of 8.9% in the same month last year.
The output of these goods registered a growth of 3.8% during April-September, as against 5.3% in the same period last fiscal.
The consumer non-durables output growth was 1.1% in September, as against 2.7% in the same month last year. This segment grew by 1.4% in first half of this fiscal, as against 4% in the same period of 2011-12.
The basic goods production growth slowed to 3.5% in September, as against 5.3% the year-ago period.
During the April-September period, this segment recorded a growth of 2.9%, compared to 7.3% in the first half of last fiscal.
Power generation growth rate slowed to 3.9% in September, compared to 9% in the same month a year ago. The segment grew by 4.6% in the April-September period this fiscal, as against 9.4% in 2011-12.