IIP grows to 19-month high of 4.7% in May

The output had contracted by 2.5% in the same month of last year

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Showing signs of recovery, industrial production grew at 19-month high of 4.7% in May due to improved performance of manufacturing, mining and power sectors and higher output of capital goods.

The output, as measured by the Index of Industrial Production (IIP), had contracted by 2.5% in the same month of last year.

IIP data for April remained unchanged at 3.4% after revision of the provisional estimates released last month, according to the information released by the Central Statistics Office (CSO).

The IIP's previous high was recorded in October 2012 at 8.4%.

During the April-May period of the current fiscal, the IIP recorded a growth of 4%, as against contraction of 0.5% in the first two months of 2013-14.

Manufacturing, which constitutes over 75% of the index, grew 4.8% in May, compared to decline in output by 3.2% a year ago. For April-May, the sector recorded a growth of 3.7%, compared to a contraction of 0.7% in the year-ago period.

Production of capital goods, a barometer of demand, grew by 4.5% in May, in sharp contrast to a contraction in output by 3.7% in same month of last year.

For April- May, the output has grown by 9.3%, compared to the contraction of 2.1% in the first two months of 2013-14.

The mining sector grew by 2.7% in May as against a dip of 5.9 per a year ago. For April-May, the segment grew by 2.6%, compared to decline in production by 4.7% in the year-ago period.

Power generation increased by 6.3% in May as compared to 6.2% growth in the same month of 2013. In April-May, power output grew by 9% compared to a growth of 5.3% in the year-ago period.

Overall, 16 of the 22 industry groups in manufacturing showed positive growth in May.