Factory output slips to 1.7% in January

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Factory output slips to 1.7% in January

India’s factory output grew 1.7 percent in January, lower than previous month’s 2.4 percent, and 7.5 percent in January last year.

Factory output measured by the index of industrial production (IIP) is the closest approximation to gauge business activity in the economy.

Over the last few months IIP growth has been erratic, particularly in the manufacturing sector that accounts for more than 75 percent of all industrial production in the country.

For instance, in November, industrial growth had unexpectedly fallen to a 17-month low of 0.5 percent due to poor performance from the manufacturing sector, which contracted 0.4 per cent in November 2018, as against a 10.4 per cent growth seen in November 2017.

chart 2

The manufacturing sector’s gross value added (GVA), which is GDP minus taxes and is a more realistic proxy to measure economic activity, grew 6.7 percent in October-December 2018 compared to 8.9 percent in the same quarter of the previous year.

The consumer non-durable sector’s output grew 3.8 percent in January compared to 5.3 percent in December and 10.5 percent in January 2018.

Images are for reference only.Images gathered automatic from google.All rights on the images are with their original owners.

2019-03-14 01:53:13

Images are for reference only.Images gathered automatic from google.All rights on the images are with their original owners.

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