Factory output in July: Index of Industrial Production (IIP) rises by 2.6 per cent

BusinessIIP for June was revised upwards to a decline of 1.78 pct from a provisional 2.2 pct dip in production. Reuters

Meanwhile, the mining output declined 2.3 per cent in July, compared with a dip of 3.5 per cent. In April-July, the sector declined 4 per cent compared with a contraction of 2 per cent in the corresponding period.

Among the 22 industry groups in the manufacturing sector, 11 recorded positive growth in July.

Consumer goods output contracted 0.9 per cent in July, compared with expansion of 0.7 per cent in the same month last year. Production of these goods declined 2 per cent in April-July compared with growth of 3.1 per cent in the same period of 2012.

IIP graphs

The decline in output of consumer durables stood at 9.3 per cent in July, from a growth of 0.8 per cent previously. The segment saw a 12 per cent decline in output in April-July compared with growth of 6.1 per cent.

Consumer non-durables output expanded 6.8 per cent in July against a contraction of 0.6 per cent a year earlier. The segment grew 6.8 per cent in April-July compared with growth of 0.6 per cent.

Growth in intermediate goods production was at 2.4 per cent in July as against 0.1 per cent a year ago. For April-July, the segment's expansion was 1.8 per cent compared with 0.6 per cent in the same period a year ago.

Basic goods output grew by 1.7 per cent in July from a growth of one per cent in July 2012. Production of these goods grew by 0.2 per cent in April-July compared with growth of 2.7 per cent a year earlier.

Commenting on the IIP data, Economic Affairs Secretary Arvind Mayaram said, "Growth is likely to pick up from now onwards."

Decisions of the Cabinet Committee on Investment should get reflected in the growth numbers, he said, adding that the second quarter would be better than the first quarter.

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