Factory Output Growth at 17-Month High in Nov, But Inflation a Dampener

New Delhi: Industrial production growth zoomed to a 17-month high of 8.4 per cent in November 2017 on the back of robust performance of manufacturing and capital goods sectors.

The factory output, measured in terms of Index of Industrial Production (IIP), grew 5.1 per cent in November 2016, as per data released today by the Central Statistics Office (CSO).

The previous high was recorded at 8.9 per cent in June, 2016. Meanwhile, the IIP growth for October 2017 has been revised downwards to 2 per cent from the provisional estimates of 2.2 released last month.

Manufacturing sector, which constitutes 77.63 per cent of the IIP, recorded an impressive growth of 10.2 per cent in November as compared to 4 per cent a year ago.

The industry group 'Manufacture of pharmaceuticals, medicinal chemical and botanical products' has shown the highest positive growth of 39.5 percent, followed by 29.1 per cent in computer, electronic and optical products and 22.6 percent in 'manufacture of other transport equipment'.

Capital goods output, which is a barometer of investment, grew by 9.4 per cent in November as against 5.3 per cent a year ago.

Consumer non-durables, which are mainly fast moving consumer goods (FMCG), showed an output growth of 23.1 per cent as against 3.3 per cent in November 2016.

However, the mining sector production growth slowed to 1.1 per cent from 8.1 per cent a year ago. Electricity generation growth too slowed to 3.9 per cent in November from 9.5 per cent in the corresponding month a year ago.

Production growth of consumer durables, mainly white goods like TVs, refrigerators and washing machines, also slowed to 2.5 per cent from 6.8 per cent.

As per use-based classification, the growth rates in November 2017 are 3.2 per cent in primary goods, 5.5 per cent in intermediate goods and 13.5 per cent in infrastructure/construction goods.

In terms of industries, 15 of the 23 industry groups in the manufacturing sector have shown positive growth during November 2017 as compared to the same month a year ago.