India's industrial production rises 1.2% in May 2016

IIP growth for April 2016 revised downwards to (-) 1.4% from (-) 0.8%

India's industrial production (IIP) increased 1.2% in May 2016 over May 2015, while snapping 1.4% dip recorded in the previous month. The manufacturing sector production rebounded 0.7%, after two months of decline, contributing to the rise in industrial output in May 2016. The mining output rose 1.3% in May 2016, but the electricity generation growth eased to five-month low of 4.7%.

As per the use-based classification, the basic goods output moved up 4% in May 2016 over a year ago, while the output of intermediate goods moved up 3.6%. The consumer goods output moved up 1.1%, but that of capital goods plunged 12.4% in May 2016. Within consumer goods, the production of consumer durables increased 6%, but that of consumer non-durables declined 2.2% in May 2016.

The IIP growth in April 2016 has been revised downwards to (-) 1.4% in the first revision compared with (-) 0.8% reported provisionally. Meanwhile, the growth in February 2016 has also been revised downwards to 1.9% at the final revision from 2% at first revision as well as reported provisionally.

In terms of industries, fourteen (14) out of the twenty two (22) industry groups in the manufacturing sector have shown positive growth during the month of May 2016 as compared to the corresponding month of the previous year.

The industry group 'office, accounting & computing machinery' has shown the highest positive growth of 18.8% followed by 14.8% in 'machinery & equipment' and 10.1% in 'medical, precision & optical instruments, watches and clocks'.

On the other hand, 'electrical machinery & apparatus has shown the highest negative growth of (-) 41.1%, followed by (-) 8.1% in 'furniture; manufacturing' and (-) 7.6% in 'luggage, handbags, saddlery, harness & footwear; tanning and dressing of leather products'.

Some important items that have registered high positive growth include 'woollen carpets' 67.0%, 'di ammonium phosphate' 59.3%, 'aviation turbine fuel' 48.2%, 'air conditioner (room)' 38.6%, 'scooters and mopeds' 32.1% and 'petrol' 20.2%.

Some important items showing high negative growth during the current month over the same month in previous year include 'cable, rubber insulated' (-) 89.8%, 'sugar' (-) 69.1%, 'aluminium foils' (-) 65.8%, 'polythene bags including HDPE and LDPE bags' (-) 48.9%, 'cement machinery' (-) 48.5%, 'marble tiles/ slabs' (-) 44.5%, 'HR sheets' (-) 39.9%, 'cashew kernels' (-) 27.5% and 'vitamins' (-) 25.6%.

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