A decline in the manufacturing sector brought down India’s factory output in June, official data showed on Friday.

The factory output, as per the new Index of Industrial Production (IIP) with revised base year of 2011-12, declined by (-)0.1% during June from a rise of 2.80% reported for May, 2017.

The factory output had expanded by eight% in the corresponding month of the previous year.

On a year-to-date basis, the output rose by 2% during April-June, 2017.

As per the IIP data released by the Central Statistics Office (CSO), last month’s contraction was mainly on account of a (-)0.4% (2.61%) deceleration in manufacturing output, which has the maximum weight in the overall index.

Besides manufacturing, the output of other two major sub-indices — mining and electricity — slowed during the month under review.

The mining output inched-up by 0.4% (0.19% in May) and that for electricity generation edged higher by 2.1% (8.28%).

Among the six use-based classification groups, the output of primary goods contracted by (-) 0.2%, (-) 0.6% in intermediate goods, consumer durables declined by (-) 2.1% and capital goods’ was lower by (-) 6.8%.

In contrast, the output of consumer non-durables edge-higher by 4.9% and 0.6% in infrastructure or construction goods.

“In terms of industries, fifteen out of the twenty three industry groups in the manufacturing sector have shown negative growth during the month of June 2017 as compared to the corresponding month of the previous year,” the “Quick Estimates of IIP” for the month of June 2017 said.

“The industry group ‘manufacture of electrical equipment’ has shown the highest negative growth of (-) 20.1% … On the other hand, the industry group ‘other manufacturing’ has shown the highest positive growth of 28.1%.”

First Published | 11 August 2017 8:32 PM
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