SME Times News Bureau | 12 Jul, 2019
Factory output growth of the country eased in May 2019 as
it rose by 3.1 per cent from a revised growth of 4.32 per cent reported for
April 2019, official data showed on Friday.
Even on a year-on-year (YoY) basis, May's industrial production growth of 3.1
per cent was lower than the 3.8 per cent achieved during the corresponding
month of the previous fiscal.
"The cumulative growth for the April-May 2019 period over the
corresponding period of the previous year stands at 3.7 per cent," the
Ministry of Statistics & Programme Implementation said in 'Quick Estimates
of Index of Industrial Production' (IIP).
Besides, the output rate of the manufacturing sector rose
2.5 per cent in May from a year-on-year (YoY) rise of 3.6 per cent. On a YoY
level, mining production grew 3.2 per cent from a rise of 5.8 per cent and the
sub-index of electricity generation was higher by 7.4 per cent from 4.2 per
Among the six use-based classification groups, the output of primary goods,
with the highest weightage of 34.04, grew by 2.5 per cent. The output of
intermediate goods, which has the second highest weightage, inched up by 0.6
Similarly, output of consumer non-durables rose 7.7 per cent, however, consumer
durables slipped (-)0.1 per cent.
In addition, output of infrastructure or construction goods increased by 5 .5
per cent, but that of capital goods inched-up by 0.8 per cent. In terms of
industries, 12 out of the 23 industry groups in the manufacturing sector have
showed positive growth during the month under review as compared to the
corresponding month of the previous year.
"The industry group 'Manufacture of wood and products of wood and cork, ex
cept furniture; manufacture of articles of straw and plaiting materials' has
shown the highest positive growth of 24.8 per cent followed by 15.9 per cen t
in 'Manufacture of food products' and 9.4 per cent in 'Manufacture of computer,
electronic and optical products."
"On the other hand, the industry group 'Manufacture of paper and paper pro
ducts' has shown the highest negative growth of (-) 12.2 per cent followed b y
(-) 9.9 per cent in 'Manufacture of furniture' and (-) 8.7 per cent in
'manufacture of fabricated metal products, except machinery and equipment'."
On IIP, Aditi Nayar, Principal Economist, ICRA said: "The sequential dip
in industrial growth in May 2019 reflects the trend in core sector expansion,
which offset the shallower drag from the contraction in auto production, as
well as an improvement in growth of non oil merchandise exports."