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IIP growth slows to 3.1% in April due to weak performance from manufacturing sector

The Central Statistics Office, that revealed the data, also revised upwards the IIP growth figure for March to 3.75% from provisional estimate of 2.7% released last month

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Industrial Production Growth slipped to 3.1% in April due to poor show by manufacturing, mining and power sectors coupled with lower off take of capital goods and consumer durables.

The factory output measured in terms of the Index of Industrial Production (IIP) had expanded by 6.5% in April last year, the data released by the Central Statistics Office (CSO) showed.

The CSO also revised upwards the IIP growth figure for March to 3.75% from provisional estimate of 2.7% released last month.

According to the CSO data, the manufacturing sector, which constitutes 77.63% of the index, grew at 2.6% in April compared to 5.5% in same month last year.

Similarly, mining sector output grew at 4.2% in the month under review compared to 6.7% a year ago. Power generation rose by 5.4% in April, down from 14.4% expansion in April last year.

The output of capital goods, which are the barometer of investment in the country, contracted by 1.3%in April compared to growth of 8.1% a year ago.

Similarly, consumer durables or white goods production declined by 6% in April against 13.8% growth a year ago.

As per use-based classification, the growth rates in April 2017 over April 2016 are 3.4 per cent in primary goods, 4.6 per cent in intermediate goods and 5.8 per cent in infrastructure/ construction goods.

The consumer non-durables have recorded a growth rate of 8.3 per cent. Consumer goods overall grew at 5.8 per cent.

In terms of industries, 14 out of 23 industry groups in the manufacturing sector have shown positive growth in April 2017 compared to the corresponding month of the previous year.

The industry group manufacture of pharmaceuticals, medicinal chemical and botanical products has shown the highest growth of 29.1 per cent followed by 17.9 per cent in manufacture of tobacco products and 9.5 per cent in manufacture of machinery and equipment .

On the other hand, the industry group manufacture of beverages has shown the highest negative growth of (-) 19.2% followed by (-) 15.6% in manufacture of motor vehicles, trailers and semi-trailers and (-) 14.4% in manufacture of electrical equipment .

 

 

 

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