Industrial production growth stood at 0.5 per cent in November, the government said on Friday, largely due to a contraction in manufacturing activity. That marked the slowest rate of growth in industrial production recorded since June 2017. The industrial production or factory output, determined by Index of Industrial Production (IIP), also missed economists’ expectation by a large margin.
A poll of economists had forecast a growth of 4.1 per cent in industrial production for November, news agency Reuters reported.
The growth in industrial production in October was revised upwards to 8.4 per cent, from 8.1 per cent, the data from the Central Statistics Office (CSO) showed.
In the category of manufacturing, which has a weightage of 77.6 per cent on the index, the production contracted 0.4 per cent in November. Growth in manufacturing had stood at 8.2 per cent in the previous month, and 10.4 per cent in November 2017, the data showed.
Growth in mining and electricity stood at 2.7 per cent and 5.1 per cent in November respectively. Mining has a weightage of 14.4 per cent on the Index of Industrial Production.
Industrial production grew 5 per cent in the first eight months of the current financial year (April-November) the government noted in its statement. Overall growth had stood at 3.2 per cent in the corresponding period of the previous fiscal year.
(With agency inputs)