New Delhi: Decline in manufacturing output and lower offtake of consumer durables pulled down industrial production growth to 4-month low of 0.5 percent in July, dashing hopes of recovery.
IIP for June has been revised upwards to 3.9 percent from the provisional estimates of 3.4 percent released last month, according to data released by the Central Statistics Office.
The consumer goods output contracted by 7.4 percent in July compared, to 0.7 percent contraction logged a year ago.
For April-July, the segment shows a contraction of 4.5 percent, compared to a decline of 1.8 percent in the same period of 2013-14.
The consumer durables segment declined by 20.9 percent in July, as against a dip of 9.6 percent a year ago.
For April-July, it declined 12.5 percent as against a dip of 11.9 percent in the four month period of last fiscal.
Consumer non-durable goods output grew at 2.9 percent in July, compared to 7.4 percent in same month last year.
During April-July, the segment has grown at 1.3 percent compared to 7.2 percent in same period last fiscal.
Overall, 12 of the 22 industry groups in manufacturing showed positive growth in July.
According to the CSO data, production of capital goods, a barometer of demand, contracted by 3.8 percent in July, in sharp contrast to a growth of 15.9 percent in same month of last year.
For the April-July period, the capital goods output has grown by 8.5 percent, compared to 1.4 percent in the first four months period of 2013-14.
The mining sector grew by 2.1 percent in July as against a dip of 3 per a year ago. For April-July, the segment grew by 2.8 percent, compared to decline in production by 4.3 percent in the year-ago period.
Power generation increased by 11.7 percent in July as compared to 5.2 percent growth a year ago. In April-July, power output grew by 11.4 percent compared to a growth of 3.9 percent in the same period a year-ago.
Output of intermediate goods expanded 2.6 percent in July, compared to 3.2 percent a year ago. For April-July the output has grown by 2.8 percent, compared to 2.1 percent growth in the first four months of last fiscal.
Basic goods output grew 7.6 percent in July, against a growth of 1 percent a year ago. For April-July, the segment has grown by 8.1 percent compared to 0.1 percent in the same period of 2013-14.
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