October IIP Growth Plunges To 14-Month Low Of 0.4%; Mining, Electricity Output Negative
The Index of Industrial Production (IIP) stood at 0.4%, according to data released by the Ministry of Statistics on Monday.
India's industrial output fell sharply in October compared to last year, due to a decline in electricity production and mining.
The Index of Industrial Production (IIP) stood at 0.4%, the lowest in 14 months, according to data released by the Ministry of Statistics on Monday. The Bloomberg estimate was 2.5%. In September, the IIP grew 4%.
The slow growth in the month could be attributed to less number of working days because of a number of festivals in the month including Dussehra, Dipawali and Chhath, the Ministry said in a statement.
Manufacturing growth was 1.8% in October, lower than 5.6% the previous month.
Mining fell 1.8%, a second consecutive month of contraction.
Electricity output declined 6.9%, after three straight months of expansion. Lower demand in October and consequent decline in electricity generation was driven by extended rainfall season and comfortable ambient temperature across multiple states, the statement added.
IIP Industry Breakup
Primary goods output contracted by 0.6% in October versus a rise of 1.3% in the preceding month.
Capital goods grew by 2.4% versus 5.4% in September.
Intermediate goods grew 0.9% versus a growth of 6.3% in the preceding month.
Infrastructure and construction goods output grew 7.1% versus 10.6% the previous month.
Consumer durables fell 0.5% versus 10% in the previous month.
Consumer non-durables output fell 4.4% versus a fall of 0.3% in the previous month.
