India's factory output rose at its slowest pace since February, led by a decline in manufacturing.
The Index of Industrial Production rose 0.4% in December 2021 compared to an increase of 1.3% in November, as per revised estimates, the data published by the Ministry of Statistics and Programme Implementation showed. Month-on-month, the index rose 7.5% after a decline of 4.5% in November.
32 economists polled by Bloomberg had forecast December IIP growth at 1.6%.
Belying expectation of a mild uptick, the annual IIP growth crumbled, partly on account of an unfavourable base, said Aditi Nayar, chief economist at ICRA. The contraction in capital goods, consumer durables and consumer non-durables, along with a feeble growth in the remaining categories, add heft to the MPC's decision to remain growth supportive in light of the incomplete recovery, she added.
Sectoral Estimates (December, Year-On-Year)
Mining output rose 2.6% after rising by 4.9% in November.
Manufacturing output declined 0.1% after rising by 0.8% last month.
Electricity generation rose 2.8%, compared to a rise of 2.1% in November
Industrial output, as classified by the end-use of goods, showed a decline in some, while others advanced.
Primary goods output rose 2.8% compared to a rise of 3.5% in November.
Capital goods output fell 4.6% after falling by 2% last month.
Intermediate goods output rose 0.3% after rising by 2.4% in the previous month.
Infrastructure and construction goods output rose 1.7% compared to a rise of 3.1%.
Consumer durables output fell 2.7% after a fall of 5.4% in the preceding month.
Consumer non-durables output was 0.6% lower compared to a rise of 0.5% in November 2021.
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