Factory output growth hits 6-month high of 5.2% in November: Govt data

Mining output picked pace to 1.9 per cent in November from 0.9 per cent in October even though it was lower than 7.0 per cent growth in the year-ago period. Electricity output grew by 4.4 per cent in November from 2.0 per cent in October. It had grown by 5.8 per cent in the year-ago period.

On the basis of use-base classification, the primary goods output grew by 2.7 per cent in November as against 2.5 per cent in October and 8.4 per cent in the year-ago period. Capital goods segment, a key indicator of the investment sentiment, grew 9.0 per cent in November as against 3.1 per cent growth in October and a contraction of 1.1 per cent in the year-ago period.

On the consumption goods side, consumer durables increased to a year’s high, while consumer and non-durables lagged behind. Consumer durables output — an indicator of consumption demand — grew 13.1 per cent in November as against 5.7 per cent growth in the previous month and 4.8 per cent in the year-ago period. Consumer non-durable goods output, which reflects fast-moving consumer goods, grew by just 0.6 per cent in November as against 2.6 per cent growth in October and a contraction of 3.4 per cent in the year-ago period.

Economists, however, pointed out that the improvement in consumer durables might not be a trend and may be due to the festive season.

“All three sectors (manufacturing, mining, electricity) and overall IIP have been on an increasing trend since September 2024. However, it will be too early to term it as industrial demand revival. Barring consumer non-durables, all the sub-sectors at the use-based level recorded an improvement in YoY growth in November 2024 from the previous month. The growth continued to be led by consumer durables, which grew 13.1 per cent YoY, at over a year’s high led by base effect. However, the consumer non-durables output was up by just 0.6 per cent YoY in November 2024. This was despite a favourable base effect. The uptick in consumer durables may be due to the festive demand and some discretionary spending. This is not a trend and needs to be monitored closely,” Paras Jasrai, Senior Economic Analyst, India Ratings and Research said.