Industrial output drops in Aug 2019; 6-year slowdown bites

pic courtesy: DHI

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India’s Index of Industrial Production  for  August 2019 stood at  1.1 per cent lower as compared to the  August 2018 with key sectors like manufacturing and capital goods showing a sharp drop in output, according to official data . This signifies  slowdown in economy.

     The  IIP for  Mining, Manufacturing and Electricity August 2019 showed growth  rates of 0.1 per cent, (-) 1.2 per cent and (-) 0.9 per cent as compared to August 2018  The cumulative growth in these three sectors during April-August 2019 over the corresponding period of 2018 has been 2.8 per cent, 2.1 per cent and 5.0 per cent respectively.

      In terms of industries, 15  out of 23 industry groups  in the manufacturing sector have shown negative growth during the month. The industry group ‘Manufacture of motor vehicles, trailers and semi-trailers’ has shown the highest negative growth of (-) 23.1 per cent followed by (-) 21.7 per cent in ‘Manufacture of machinery and equipment n.e.c.’ and (-) 18.0 per cent in‘Other manufacturing’.On the other hand, the industry group ‘Manufacture of basic metals’ has shown the highest positive growth of 11.8 per cent followed by 11.3 percent in ‘Manufacture of wood and products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials’ and 10.3 per cent in ‘Manufacture of wearing apparel’, the offiial release stated. 

    As per  use-based classification, the growth rates in August 2019 over August 2018 are 1.1 per cent in primary goods, (-) 21.0 per cent in  capital goods, 7.0 per cent in intermediate goods and (-) 4.5 per cent in infrastructure/ construction goods I).  The consumer durables and consumer non-durables have recorded growth of (-) 9.1 percent and 4.1 percent respectively.

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