India IIP: Factory output unexpectedly contracts by 1.6% in May

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During April-May the factory output measured in terms of IIP worked out to be meagre 0.1 per cent,down from 0.6 per cent in the corresponding period last fiscal.

Manufacturing sector,which constitutes over 75 per cent of the index,contracted by 2 per cent in May as against a growth of 2.6 per cent in the year-ago month.

The mining sector output too declined by 5.7 per cent in May,compared to a dip in the production by 0.7 per cent in the year-ago period.

The capital goods output also saw a contraction of 2.7 per cent during the month,as compared to a decline in production by 8.6 per cent in the year-ago period.

Power generation,however,reported an increase of 6.2 per cent in May as against a growth of 5.9 per cent in same month last year.

Overall,11 of the 22 industry groups in manufacturing sector have shown positive growth in May.

In the April-May period of 2013-14 fiscal,manufacturing grew by just 0.1 per cent,compared to 0.4 per cent in the first two months of 2012-13.

The mining sector saw a contraction of 4.5 per cent in April-May,compared to a dip in the production by 1.7 per cent in the year-ago period.

The capital goods output also saw a contraction by 1.5 per cent in April-May,compared to decline in production by 15.2 per cent in the two months last year.

Electricity generation grew by 5.3 per cent in April-May,compared a growth in production by 5.2 per cent the year-ago.

The consumer goods output also saw contraction of 4 per cent in May,compared to a growth of 4.4 per cent in same month last year. The production of these goods also declined by one per cent in April-May compared to a growth of 4 per cent in the period last fiscal.

The decline in the output of consumer durables stood at 10.4 per cent in May,from a growth of 9.7 per cent in the same month of 2012. The segment also saw a decline in output by 9.6 per cent in April-May period compared to a growth of 7.5 per cent in the corresponding period last fiscal.

Consumer non-durables output grew by 1.7 per cent in May against a contraction of 0.1 per cent in the month a year ago. This segment grew by 6.7 per cent in April-May period this fiscal compare to a meagre growth of 1.1 per cent in the same month 2012-13.

The intermediate goods production grew by 1.5 per cent in May,compared to a growth of 3.4 per cent in year-ago period. The segment grew by 2.1 per cent in April-May period compared to a growth of 0.8 per cent in the two months last fiscal.

The basic goods output declined by 0.4 per cent in May,from a growth of 4.4 per cent in May 2012.

The production of these goods grew by 0.7 per cent in April-May period compared a growth of 3.2 per cent in the two months last year.

India’s May industrial production unexpectedly fell 1.6 pct y/y: govt

(Reuters) India’s industrial production unexpectedly contracted 1.6 percent in May from a year earlier,government data showed on Friday.

Analysts had expected output to grow 1.6 percent annually. April’s output growth was revised down to an annual 1.9 percent from 2.3 percent earlier.

Manufacturing sector,which constitutes about 76 percent of industrial production,shrank 2.0 percent from a year earlier,the federal statistics office said.

Capital goods production,a barometer for investments in the economy,contracted an annual 2.7 percent in May from a year earlier.