Industrial Production Contracts 1.9% In October

The Index for Industrial Production (IIP) for the month of October was down by 1.9 per cent as compared to a 0.7 per cent growth reported in the month of September. The IIP is likely to shrink further in the coming months as the impact of demonetisation of Rs 500 and Rs 1,000 currency notes by the government takes effect.
 
Sectors like mining and manufacturing registered a decline in production by 1.1 per cent and 2.4 per cent, respectively. Electricity generation reported an increase of 1.1 per cent.

Indicating lackluster activity in the economy, 12 out of 22 industry groups in the manufacturing sector  reported negative growth during the month of October as compared to corresponding month of the last year.
 
The industry group 'Electrical machinery & apparatus' reported the highest decline of 58.3 per cent, followed by a fall of 29.5 per cent in 'Office, accounting and computing machinery' and 12.3 per cent decline in 'Wood and products of wood & cork except furniture'.

'Coke, refined petroleum products & nuclear fuel' reported a positive growth of 18.4 per cent, followed by 7.9 per cent in ' Motor vehicles, trailers & semi- trailers'.

Consumer durables recorded a growth of 0.25 while consumer non-durables saw a 3 per cent decline. Overall growth in Consumer goods also declined by 1.6 per cent.

Indicating lack of activity in infrastructure industry, the Capital goods output declined by 25.9% in October.