IIP plunges to over 4-year low at (-) 3.2% in November

Dashing hopes of recovery, industrial production contracted by 3.2 per cent in November -- the lowest level in over four years -- due to poor performance of manufacturing sector and a sharp decline in capital goods output.
The Index of Industrial Production (IPP) measuring factory output, grew at 5.2 per cent in November, 2014, as per the data released by the Central Statistics Office (CSO) today.
This is the worst performance since October 2011 when IIP had contracted by 4.7 per cent.
The industrial production growth in October was slightly revised upwards to 9.9 per cent from provisional estimates of 9.8 per cent released last month.

The manufacturing sector, which constitutes over 75 per cent of the index, contracted by 4.4 per cent as against a growth of 4.7 per cent in the same month last year.
Seventeen out of 22 industry groups in the manufacturing segment showed negative growth during November 2015 compared to the corresponding month of the previous year.

Capital goods output, which is a barometer of investment, contracted by 24.4 per cent in November 2015 compared to a growth of 7 per cent in same month of previous year.
The electricity sector, which constitutes about 10 per cent of the index, also showed dismal performance as it grew by meagre 0.7 per cent in November 2015 compared to 10 per cent growth in same month a year ago.

The mining sector output grew by 2.3 per cent in November 2015 against 4 per cent growth in the same month a year ago.
The performance of consumer goods segment was also dismal
as it recorded a meager growth of 0.4 per cent in March compared to a contraction of 0.6 per cent a year ago. During 2014-15, the output of these goods grew at 3 per cent compared to a decline in production by 3.5 per cent.
However, consumer durables performed well and recorded a growth of 8.7 per cent in March this year compared to contraction of 4.6 per cent. During the entire fiscal, the output of these goods grew by 11.2 per cent compared a decline in production by 12.6 per cent.

The consumer non-durable goods output contracted by 4.4 per cent in March compared to a growth of 1.9 per cent in same month a year ago. During the fiscal under review, the output declined by 1.7 per cent compared to a growth of 2.8 per cent in 2014-15.
The production of intermediate goods grew at 3.7 per cent in March compared to a growth of 2.8 per cent in same month a year ago. The basic goods output too registered a growth of 4 per cent in March as against 2.6 per cent a year ago.
Some important items showing high positive growth include Wood Furniture, Leather Garments, Telephone Instruments, Tea, Transformers (small), Cashew Kernels, Scooter and Mopeds, Aluminium Conductor and Commercial Vehicles.

The items that registered high negative growth during the current month include Cable, Rubber Insulated, Polythene Bags, Cement Machinery, Heat Exchangers, H R Sheets, Ship Building and Repairs, Lubricating oil, Sugar, Furnace oil, Molasses and Woollen Carpets.