IIP output contracts 0.1% in June; hits four-year low

Growth of capital goods continued to fall, down 6.8%

Industrial output in the country slipped into negative territory in June, dragged down by a contraction in manufacturing, apart from an unabated fall in capital goods.

Figures for the Index of Industrial Production (IIP), released by the government on Friday, showed national factory output contracting by 0.1 per cent, a 48-month low, as compared to the 2.7 per cent rise seen in the previous month of May.

The index had earlier fallen by a wider margin, of one per cent, in June 2013. The fall was primarily because of the manufacturing sector, more than three-fourth of the IIP, falling in June by