Feb IIP at nine-month high of 5%, beats estimates

Industrial activity in the country, measured in terms of the Index of Industrial Production (IIP), registered a 5% growth during February 2015 as compared to a 2.6% rise in the previous month.

The IIP grew by 1.7% during December 2014, while it increased by 3.8% in November 2014.

The IIP had declined by 2% in February 2014.

The cumulative growth for April 2014-February 2015 stood at 2.8% while the figure for the corresponding period of the previous fiscal stood at a negative 0.1%.

The gain in the month under review came mainly due to the higher output of manufacturing and mining sectors.

In February, the manufacturing sector grew by 5.2% from a decline of 3.9% in the corresponding month of 2014.

The mining sector grew by 2.5% from an increase of 2.3% in the corresponding month of last year.

However, electricity sector rose 5.9% against the 11.5% increase in February 2014.

Cumulatively, the manufacturing sector grew by 2.2% in April 2014-February 2015 from a decline of 0.7% in the corresponding period of 2013-14.

The mining sector grew cumulatively by 1.5% and electricity sector rose 9.1%.

Manufacturing of basic, capital, intermediate, consumer and consumer non-durables goods showed growth during the month under review. Production of basic goods grew by 5%, while capital goods was up 8.8%, intermediate goods rose by 1.1%.

Consumer goods production growth in the month under review was up 5.2%, while consumer non-durables goods zoomed by 10.7%.

However, consumer durables goods production declined by 3.4%.

Overall, 15 out of the 22 industry groups in the manufacturing sector have shown positive growth during the month under review.

Segment-wise, growth was witnessed in air conditioners (27.4%), carbon steel (27.4%), aluminium conductors (27.9%), PVC pipes and tubes (44.9%)apparels (52.5%), stainless steel (57%), cable rubber insulated (63.5%), polythene bags (131.6%) and leather garments (151.8%).

Segment-wise, high negative growth was reported in CR sheets (- 21.7%), generators (- 28.7%), boilers (- 28.8%), tractors (- 29.8%), tractors (- 42.6%), computers (-51.5%), and telephone instruments including mobile phones and accessories(-51.5%) and electric sheets (-53.9%).