Industrial production rises only 0.7% in Sept’16 y-o-y

The Dollar Business Bureau 

Industrial output grew merely 0.7% in the month of September mostly due to the poor performance by mining and manufacturing sectors along with a drop in the output of capital goods. 

The factory production during the period April-September 2016-17 declined by 0.1% against the 4% growth in the same period a year-ago, according to the data released by Central Statistics Office (CSO) on Friday. 

In terms of Index of Industrial Production (IIP), factory production had recorded a growth of 3.7% in the month of September last year. 

The manufacturing sector, which forms 75% of the IIP index, witnessed a flat growth of 0.9% in the month of September against the 2.7% growth in the same month previous year. 

With regards to industries, out of 22 groups in manufacturing sector, 12 recorded a positive growth in September. 

The capital goods production witnessed a steep drop of 21.6% in September compared to a growth rate of 10.1% a year-ago. 

The mining sector, in September, witnessed a decline of 3.1% compared to a 3.5% growth a year ago. 

In the given month, power generation sector recorded a 2.4% growth against the 11.4% growth a year ago. 

Consumer durables output recorded a growth of 14% in the month of September against a growth of 8.5% a year ago. The consumer non-durable goods production increases 0.1% in September compared to 3.6% contraction in the same month a year ago. 

Overall, the production of consumer goods witnessed a growth of 6% in the month of September this year against the 1.2% growth a year ago. 

According to use-based classification, the rates of growth in the month of September this year compared to the same month in 2015 are 2.2% in Intermediate goods and 4% in basic goods. 

During the period April-September, the output of manufacturing sector showed a decline of 0.8%, compared to 4.2% growth a year ago.Industr 

Output of capital goods, which is considered as an indicator for investment, dropped by 21.4% in the first six-month of current fiscal, compared to a 7.8% growth in the same period a year ago.