May Factory Output slips to 3.1%
Despite having back to back three rate cuts and inflation under control, IIP data for the month of May is not encouraging and it indicates slowdown. As per the data released by Ministry of Statistic and Program Implementation, the Quick Estimates of Index of Industrial Production (IIP) with base 2011-12 for the month of May 2019 stands at 133.6, which is 3.1 percent higher as compared to the level in the month of May 2018.
The growth rates for the Mining, Manufacturing and Electricity sectors for the month of May 2019 stand at 3.2 percent, 2.5 percent and 7.4 percent as compared to May 2018. The cumulative growth in these three sectors during April-May 2019 over the corresponding period of 2018 has been 4.1 percent, 3.2 percent and 6.7 percent respectively.
In terms of industries, twelve out of the twenty three industry groups (as per 2-digit NIC-2008) in the manufacturing sector have shown positive growth during the month of May 2019 as compared to the corresponding month of the previous year. The industry group ‘Manufacture of wood and products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials’ has shown the highest positive growth of 24.8 percent followed by 15.9 percent in ‘Manufacture of food products’ and 9.4 percent in‘Manufacture of computer, electronic and optical products’.On the other hand, the industry group ‘Manufacture of paper and paper products’ has shown the highest negative growth of (-) 12.2 percent followed by (-) 9.9 percent in ‘Manufacture of furniture’ and (-) 8.7 percent in ‘Manufacture of fabricated metal products, except machinery and equipment’.
As per Use-based classification, the growth rates in May 2019 over May 2018 are 2.5 percent in Primary goods, 0.8 percent in Capital goods, 0.6 percent in Intermediate goods and 5.5 percent in Infrastructure/ Construction Goods. The Consumer durables and Consumer non-durables have recorded growth of (-) 0.1 percent and 7.7 percent respectively.
Interest Rate Cut on Small Saving Schemes
The growth rates for the Mining, Manufacturing and Electricity sectors for the month of May 2019 stand at 3.2 percent, 2.5 percent and 7.4 percent as compared to May 2018. The cumulative growth in these three sectors during April-May 2019 over the corresponding period of 2018 has been 4.1 percent, 3.2 percent and 6.7 percent respectively.
In terms of industries, twelve out of the twenty three industry groups (as per 2-digit NIC-2008) in the manufacturing sector have shown positive growth during the month of May 2019 as compared to the corresponding month of the previous year. The industry group ‘Manufacture of wood and products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials’ has shown the highest positive growth of 24.8 percent followed by 15.9 percent in ‘Manufacture of food products’ and 9.4 percent in‘Manufacture of computer, electronic and optical products’.On the other hand, the industry group ‘Manufacture of paper and paper products’ has shown the highest negative growth of (-) 12.2 percent followed by (-) 9.9 percent in ‘Manufacture of furniture’ and (-) 8.7 percent in ‘Manufacture of fabricated metal products, except machinery and equipment’.
As per Use-based classification, the growth rates in May 2019 over May 2018 are 2.5 percent in Primary goods, 0.8 percent in Capital goods, 0.6 percent in Intermediate goods and 5.5 percent in Infrastructure/ Construction Goods. The Consumer durables and Consumer non-durables have recorded growth of (-) 0.1 percent and 7.7 percent respectively.
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