July industrial output grows a meagre 0.1% MoM

Poor show by manufacturing, mining and capital goods sectors, reflecting weak economic activity add to the woes of IIP pressure.

Manufacturing, which constitutes about 76% of industrial production, fell an annual 0.2% from a year earlier.

Industrial output in the April-July period of this fiscal has thus contracted by 0.1%, according to the official data released today. Growth in factory output, as measured by the index of industrial production (IIP), was 3.7% in July last year, and 6.1% in the April-July period in 2011-12.

The manufacturing sector, which constitutes over 75% of the index, witnessed a contraction in output by 0.2% in July, as against growth of 3.1% in the same month last year.

The performance of the manufacturing sector in April-July was poor as output contracted by 0.6%, as against a growth of 6.5% in the four-month period of last year.

The capital goods production also down by 5% in July against a contraction of 13.7% in the same month a year ago. The output of capital goods contracted in April-July period by 16.8%, as against a growth of 8.2% in 2011-12.

Mining output in July dipped by 0.7%, as against a growth of 0.7% in the same month a year ago. The sector's production in April-July quarter declined by 0.9%, compared to a growth of 0.6% in 2011-12.

Consumer goods production was up 0.7% in July as compared to 6.4% growth in the same month last year. During the April-July period of this fiscal, the growth in the segment was 3.3%, compared to 4.9% in the four month period a year ago.

(With inputs from PTI)