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Friday 10 February 2012

Industrial Output Grows 1.8% in December 2011

10th Feb,2012 Friday

Industrial production grew by just 1.8% year-on-year in December 2011 due to contraction in mining and capital goods sectors and a lower manufacturing sector growth.

Factory output growth, as measured by the Index of Industrial Production (IIP), was at 8.1% in December 2010.

Output of the manufacturing sector, which constitutes over 75% of the index, rose at a lower rate of 1.8% in December, compared to a growth of 8.7% in the same month of 2010, according to the official data released today.

Besides, capital goods sector witnessed a contraction of 16.5%, against a growth of 20.2% in the same month in 2010.
Mining output too contracted by 3.7% in December, against 5.9% growth in the year ago period.

However, power generation witnessed a good growth of 9.1% in December 2011, compared to 5.9% in the year ago period.

During the month, 15 out of 22 industry groups witnessed a positive growth.

During the month output of basic goods went up by 4%, against 7.8% in the year ago period. However, intermediate goods witnessed a contraction of 2.8%, against 8.1% growth in December 2010.
During the April-December 2011, the IIP growth stood at 3.6%, against 8.3% in corresponding period a year ago.
Besides, the IIP figure for November, 2011, has been revised to 5.94% from the provisional estimates of 5.9%.

Commenting on the IIP figures, Planning Commission Deputy Chairman Montek Singh Ahluwalia said that the numbers are expected to bottom out in the third quarter and revive in the January-March period.







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