Industry growth slips to 7-month low of 3.2 pc in May

Industrial production growth slipped to a seven-month low of 3.2 per cent in May mainly due sluggish performance of manufacturing and power sectors coupled with poor offtake of fast moving consumer goods (FMCG).

Factory output growth measured in terms of the Index of Industrial Production (IIP) was revised down to 4.8 per cent in April from previous estimates of 4.9 per cent, according to the data released by the Central Statistics Office (CSO) today.

The IIP had expanded by 2.9 per cent in May last year. The previous low of industrial production growth was 1.8 per cent in October 2017.

During April-May this fiscal, the IIP recorded a growth of 4.4 per cent as compared to 3.1 per cent in same period year ago.

The manufacturing sector, which constitutes 77.63 per cent of the index, grew by just 2.8 per cent in May, marginally up from 2.6 per cent in the corresponding period last year.

Power generation growth decelerated sharply to 4.2 per cent during the month as compared to a high of 8.3 per cent year ago.

The mining sector output recorded an impressive growth of 5.7 per cent in May as against 0.3 per cent in May last year.

The FMCG sector was the worst performer among the user based goods segment, as its output declined by 2.6 per cent as against a growth of 9.7 per cent year ago.

As per use-based classification, the growth rates in May 2018 over May 2017 are 5.7 per cent in primary goods, 7.6 per cent in capital goods, 0.9 per cent in intermediate goods and 4.9 per cent in infrastructure/construction goods . The consumer durables and have recorded growth of 4.3 per cent in the month under review.

Industry group manufacture of computer, electronic and optical products' has shown the highest positive growth of 27 per cent followed by 21.1 per cent in manufacture of motor vehicles, trailers and semi-trailers' and 13.2 per cent in manufacture of furniture.

On the other hand, the industry group other manufacturing' has shown the highest negative growth of (-) 31.9 per cent followed by (-) 15.6 per cent in manufacture of tobacco products' and (-) 12.8 per cent in manufacture of wearing apparel, it said