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Industrial output declines for 2nd month, dips 1.3% in December

Factory output measured in terms of Index of Industrial Production (IIP) also declined by 3.4% in November.

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Industrial production declined for the second month in a row, registering negative growth of 1.3% in December, mainly due to drop in manufacturing and capital goods sector.

Factory output measured in terms of Index of Industrial Production (IIP) also declined by 3.4% in November, according to data released by Central Statistics Office (CSO).

The index had registered a growth of 3.6% in December 2014, it said.

During April-December period this fiscal, the industrial output grew by 3.1% compared to 2.6% a year ago.

The decline in December has been primarily on account of a massive drop in output of capital goods which showed a contraction of 19.7% in December compared to growth of 6.1% in the same month a year ago.

The manufacturing sector, which accounts for over 75% of the index, declined by 2.4% against a growth of 4.1% in December 2014.

However, the mining sector showed an improvement, registering a growth of 2.9% in the month as against a contraction of 1.7% in same month a year ago.

Power generation showed deceleration, recording a growth of 3.2% as against 4.8% growth in same month a year ago.

As per the used based classification, basic goods reported a marginal increase of 0.5% as against 5.9% in December 2014.

The consumer goods output increased to 2.8% as against 0.6% in December last fiscal.

Consumer durables, however, showed robust growth of 16.5% in December as against a contraction of 9.2% during the same month last fiscal.

However, the consumer non-durable segment showed a contraction of 3.2% in December as against a growth of 5.6% in the corresponding month.

In terms of industries, ten out of the twenty two industry groups in the manufacturing sector showed negative growth during December 2015 as compared to corresponding month of the previous year. 

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