Factory output slightly recovered in December, but still remained in the negative territory at (-) 1.3 percent, due to a drop in manufacturing activity.

Index of Industrial Production (IIP) for the month of December has contracted 1.3 versus -3.2 percent in November

The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of December 2015 stand at 137.5, 192.0 and 183.2 respectively, with the corresponding growth rates of 2.9 percent, (-) 2.4 percent and 3.2 percent as compared to December 2014.

The cumulative growth in three sectors during April-December 2015 over the corresponding period of 2014 has been 2.3 percent, 3.1 percent and 4.5 percent respectively.

In terms of industries, ten out of the twenty two industry groups (as per 2-digit NIC-2004) in the manufacturing sector have shown negative growth during the month of December 2015 as compared to the corresponding month of the previous year (Statement II).

Some important items showing high negative growth during the current month over the same month in previous year include Cable, Rubber Insulated (-) 85.2%, Heat Exchangers (-) 68.8%, 'Cement Machinery' (-) 60.2%, 'Soyabean oil' (-) 59.0%, 'Polythene Bags including HDPE & LDPE Bags' (-) 53.9%], 'Grinding Wheels' [(-) 37.4%], 'Ayurvedic Medicaments' [(-) 24.4%, 'Boilers' (-) 22.7% and 'Sponge Iron' (-) 22.5%.  

Some other important items that have registered high positive growth include 'Woollen Carpets' (184.1%), 'Telephone Instruments including Mobile Phone and Accessories' (141.1%), 'Di Ammonium Phosphate (DAP)' (46.8%), 'Transformers (small)' (38.8%), 'Wood Furniture' (36.9%), 'Paraxylene' (32.3%), 'Commercial Vehicles' (28.7%), 'Gems and Jewellery' (27.1%), 'PVC Pipes and Tubes' (24.6%) and  'Polypropylene (including co-polymer)' (22.2%).

Meanwhile, retail inflation climbed to 5.69 percent in January from 5.61 percent in the month before, official data on the consumer price index (CPI) showed.

Food inflation, or CFPI, during the month ruled higher at 6.85 percent, as compared to 6.4 percent in December 2015, and at 6.14 percent in January 2015.

While rural retail inflation in January was at 6.48 percent, the urban CPI came in appreciably lower at 4.81 percent.