India's Industrial Output Rises 3.5% In October Driven By Manufacturing Uptick
The climb in IIP comes in the backdrop of India's eight core sectors growing by 3.1% in October.
The recovery in India's industrial output continued in October, driven by a climb in manufacturing and a modest pick up in mining and electricity generation.
The Index of Industrial Production grew by 3.5% in October, compared to a 3.1% growth in September, according to the data released by the Ministry of Statistics and Programme Implementation on Thursday.
This marked the second consecutive month of IIP growth, after the index contracted by 0.1% in August. In September, the industrial output had rebounded by 3.1%.
Among the three main sectors, manufacturing logged a growth of 4.1% in October, as compared to 3.9% in the preceding month. The output of the mining sector increased by 0.9% as against 0.2% in September, and electricity generation increased by 2% from 0.5%, the data showed.
The data, however, reflected the ongoing slowdown in demand for consumer durables as the pace of growth slipped in this segment. The output of consumer durable goods rose by 5.9% in October, lower as compared to 6.5% in September.
However, the output of primary goods accelerated by 2.6% in October, as compared to 1.8% in the preceding month. Similarly, the production of capital goods increased by 3.1% from 2.8% in September.
IIP Sectoral Estimates (YoY)
Mining output rose by 0.9%.
Manufacturing output grew by 4.1%.
Electricity generation rose by 2%.
Industrial output, as classified by the end use of goods, showed:
Primary goods production rose by 2.6%.
Capital goods output increased by 3.1%.
Intermediate goods output grew by 3.7%.
Infrastructure and construction goods output gained 4%.
Consumer durables output rose by 5.9%.
The uptick in IIP comes in the backdrop of India's core sector output also continuing its recovery. The combined index of eight core industries rose by 3.1% in October, compared to 2% growth in September, as per the official data released on Nov. 29. The core sector growth in these two months came after a contraction of 1.6% in August, which had marked the first decline in 42 months.
