Industrial growth slips to 4-month low of 4.5 per cent in Sept

New Delhi: Industrial production grew at the slowest pace in four months at 4.5 per cent in September mainly due to poor performance of mining sector and lower offtake of capital goods. The industrial production measured in terms of Index of Industrial Production (IIP) was 4.1 per cent in September 2017.

Sequentially, the factory output growth for August was revised slightly upward to 4.6 per cent from provisional figure of 4.3 per cent, according to Central Statistics Office (CSO) data released Monday. The IIP was recorded at 6.9 per cent and 6.5 per cent in June and July this year, respectively. The previous low was recorded at 3.8 per cent in May this year.

The mining sector output growth decelerated to 0.2 per cent in September against 7.6 per cent in the year-ago month. Similarly, capital goods output growth slowed to 5.8 per cent in the month under review from 8.7 per cent a year ago. However, the data showed that the manufacturing sector recorded a growth of 4.6 per cent in September, up from 3.8 per cent a year ago.

The electricity generation too improved to 8.2 per cent in the month from 3.4 per cent in September 2017.

For April-September 2018, the IIP growth came in at 5.1 per cent. The factory output rise was 2.6 per cent in same period of the last fiscal. As per use-based classification, the growth rates in September 2018 over September 2017 are 2.6 per cent in primary goods, 1.4 per cent in intermediate goods and 9.5 per cent in infrastructure/construction goods. The consumer durables and consumer non-durables have recorded growth of 5.2 per cent and 6.1 per cent, respectively.

In terms of industries, 17 out of 23 industry groups in manufacturing sector have shown positive growth during September 2018 as compared to the corresponding month of the previous year.

The industry group ‘manufacture of furniture’ has shown the highest positive growth of 32.8 per cent followed by 20.9 per cent in ‘manufacture of wearing apparel’ and 20.6 per cent in ‘manufacture of wood and products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials’. On the other hand, the industry group ‘printing and reproduction of recorded media’ have shown the highest negative growth of (-) 12.9 per cent followed by (-) 10.7 per cent in ‘other manufacturing’ and (-) 7.3 per cent in ‘manufacture of tobacco products’.

Retail inflation too fell to a one-year low of 3.31 per cent in October on the back of cheaper kitchen staples, fruits and protein-rich items. The inflation based on the Consumer Price Index (CPI) was 3.7 per cent in September 2018 and 3.58 per cent in October 2017. The retail inflation number is the lowest since September 2017 when it touched 3.28 per cent.

The rate of price rise in the food basket contracted by 0.86 per cent in October compared to 0.51 per cent rise in September, according to the Central Statistics Office data. Vegetable prices declined by 8.06 per cent in October against a 4.15 per cent contraction in September. Inflation also slowed to 0.35 per cent in the fruit basket against 1.12 per cent recorded a month ago.