Manufacturing woes drag numbers
New Delhi, October 11,2014 – Factory output growth slowed to five-month low of 0.4 per cent in August mainly due to contraction in manufacturing and capital goods.
The Index of Industrial Production (IIP) for August was at 0.4 per cent, the same as in August 2013.
Meanwhile, the IIP for July 2014 has now been revised downward to 0.4 per cent from 0.5 per cent estimated earlier, official data released by the Central Statistics Office on Friday showed.
For the April-August period, factory output saw 2.8 per cent growth as against flat production (nil growth) in the same period last fiscal.
According to the latest data, manufacturing — which accounts for 75 per cent of the index — contracted 1.4 per cent, compared to 0.2 per cent decline a year ago.
While capital goods contracted 11.3 percent (-2.0 per cent), consumer durables contracted 15 per cent (-8.3 per cent). On an overall basis, consumer goods output contracted 6.9 per cent in August (0.9 per cent decline .
The Confederation of Indian Industry Director-General Chandrajit Banerjee said industrial production continues to be slow and a visible turnaround is not happening. There is a need to provide a competitive market for coal and mining sectors, he said. Business Line
