IIP at nine-month high, re­tail in­fla­tion cools down

Ro­bust per­for­mance by min­ing and power sec­tor pushes IIP for Aug to 9-month high

The New Indian Express - - NEWS - @ New Delhi

New Delhi: Fac­tory out­put growth mea­sured in terms of In­dex of In­dus­trial Pro­duc­tion (IIP) grew at a nine-month high of 4.3% in Au­gust thanks to ro­bust per­for­mance of min­ing and power sec­tors. Mean­while, re­tail in­fla­tion eased to 3.28% in Septem­ber com­pared to 4.39% in the same month last year, govern­ment data re­leased on Thurs­day showed.

IN what may be a dou­ble boost to the coun­try’s econ­omy, the lat­est in­dus­trial pro­duc­tion data showed re­mark­able re­cov­ery while re­tail in­fla­tion eased on an an­nual ba­sis.

Fac­tory out­put growth mea­sured in terms of In­dex of In­dus- trial Pro­duc­tion (IIP) ex­panded at a ninemonth high of 4.3 per cent in Au­gust 2017 thanks to ro­bust per­for­mance of min­ing and power sec­tors cou­pled with higher cap­i­tal goods out­put, govern­ment data re­leased on Thurs­day showed.

The num­ber is no­table com­pared with that for the pre­ced­ing month at 0.94 per cent and for Au­gust 2016 at 4 per cent. The last time the in­dex show­cased such a high growth was in Novem­ber 2016 at 5.7 per cent.

IIP growth dur­ing April-Au­gust 2017 was 2.2 per cent, down from 5.9 per cent in the first five months of the pre­vi­ous fi­nan­cial year. The govern­ment also re­vised the July IIP num­ber to 0.94 per cent from 1.2 per cent in the pro­vi­sional es­ti­mates re­leased last month.

How­ever, the out­put growth in man­u­fac­tur­ing sec­tor, which con­sti­tutes 77.63 per cent of the in­dex, slowed to 3.1 per cent in Au­gust from 5.5 per cent a year ago.

The out­put of the min­ing and elec­tric­ity sec­tors grew at 9.4 per cent and 8.3 per cent com­pared to Au­gust 2016.

The growth rates in Au­gust 2017 over Au­gust 2016 are 7.1 per cent in pri­mary goods, 5.4 per cent in cap­i­tal goods, (-) 0.2 per cent in in­ter­me­di­ate goods and 2.5 per cent in construction goods.

Con­sumer durables and con­sumer non-durables sec­tors recorded growth of 1.6 per cent and 6.9 per cent, re­spec­tively.

Ten out of 23 in­dus­try groups in the man­u­fac­tur­ing sec­tor have shown pos­i­tive growth dur­ing Au­gust 2017.

Mean­while, re­tail in­fla­tion eased to 3.28 per cent in Septem­ber com­pared to 4.39 per cent in the same month last year.

Au­gust in­fla­tion was also re­vised down­wards to 3.28 per cent from 3.36 per cent. Over­all food in­fla­tion mod­er­ated to 1.25 per cent in Septem­ber from 1.67 per cent in the pre­vi­ous month.

The rate of price in veg­eta­bles soft­ened to 3.92 per cent (from 9.97 per cent in Au­gust). On the other hand, the in­fla­tion print rose in the fuel and light cat­e­gory to 5.56 per cent. It was 3.66 per cent in Au­gust.

Re­tail in­fla­tion cools Re­tail in­fla­tion eased to 3.28 per cent in Septem­ber com­pared to 4.39 per cent in the same month last year

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