Poor manufacturing pulls down IIP figure

Industrial production grew at a slower pace of 3.8 per cent in September, mainly due to subdued performance of the manufacturing sector coupled with contraction in output of consumer durables. Factory output measured in terms of the Index of Industrial Production (IIP) rose 5 per cent in September 2016 and 4.5 per cent in August this year, data released by the Central Statistics Office (CSO) showed on Friday. According to the data, IIP grew at a meagre 2.5 per cent in April-September this fiscal compared to 5.8 per cent in the first half of 2016-17.

In September, growth in the manufacturing sector, which accounts for 77.63 per cent of the index, slowed to 3.4 per cent, from 5.8 per cent a year earlier. During April- September, manufacturing grew at 1.9 per cent, down from 6.1 per cent in the same period last fiscal.

Consumer durable goods output contracted by 4.8 per cent in September as against a growth of 10.3 per cent in the previous year. During the first half of this fiscal, the output of these goods declined by 1.5 per cent as against a growth of 6.9 per cent last year. Electricity generation growth slipped to 3.4 per cent in September compared to 5.1 per cent a year before. However, mining recorded a growth of 7.9 per cent in the month under review as against a contraction of 1.2 pc a year ago.

According to the data, IIP grew at a meagre 2.5 per cent in AprilSeptember this fiscal compared to 5.8 per cent in the first half of last fiscal year