New Delhi: Industrial output slipped into negative territory with a contraction of 1.9 percent in October mainly due to sharp decline in production of capital goods and poor performance of manufacturing sector.
After showing decline for two consecutive months of July (-2.5 percent) and August (-0.7 percent), factory output, as measured in terms of the Index of Industrial Production (IIP), had grown at 0.7 percent in September.
For the April-October period, industrial output declined by 0.3 percent as against a growth of 4.8 per cent a year ago, as per the data released by Central Statistics Office on Friday.
Factory output grew at a higher rate of 9.9 percent in October last year mainly driven by better performance of manufacturing sector and increase in output of capital goods by 16.5 percent. The manufacturing sector, which constitutes over 75 percent of the IIP index, recorded a contraction 2.4 per cent in October. Similarly the capital goods output also shrank by 25.9 percent.
In terms of industries, 12 out of 22 groups in the manufacturing sector showed negative growth in October.
The mining sector recorded a contraction of 3.1 percent in October as against a growth of 3.5 percent a year ago.
Power generation recorded a growth of 1.1 percent in October compared to 5.3 percent growth in the same month a year ago.
Growth in output of consumer durables went up by just 0.2 percent in October compared to 41.9 percent growth a year ago.
The output of consumer non-durable goods declined by 3 percent in October as against 4.8 percent growth a year ago.
Overall, consumer goods production dipped 1.6 percent in October compared to 18.3 percent growth a year ago.
As per 'use-based' classification, the growth rates in October 2016 over October 2015 are 4.1 percent in basic goods, (-) 25.9 percent in capital goods and 2.9 per cent in intermediate goods.
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