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Industrial production declines 1.6% in May 2013

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Capital Market
Last Updated : Jul 12 2013 | 6:50 PM IST
India's industrial production declined 1.8% in May 2013 snapping 1.9% growth in April 2013. The continuous decline in the output of mining sector remained the major drag on the growth of industrial production, while the output of manufacturing sector also declined in May 2013.

The output mining and manufacturing sector declined 5.7% and 2.0%, respectively in May 2013. However, the electricity generation grew 6.2% in May 2013, restricting further decline in the output of industrial production in May 2013.

The industrial output declined 1.6% in May 2013 against economist expectation of 1.5% growth for May 2013. As per the results of Capital Market's poll, economist had projected IIP growth for May 2013 in the range of 0.6% to 3.1%.

The industrial production growth for the month of April 2013 has been revised downwards to 1.9% from 2.3% reported earlier, while the growth for the month of February 2013 has been scaled up slightly to 0.6% from 0.5% reported earlier.

In terms of industries, eleven (11) out of the twenty two (22) industry groups in the manufacturing sector have shown negative growth during the month of May 2013, as compared to the corresponding month of the previous year. The industry group 'Office, accounting & computing machinery' has shown the highest negative growth of 30.0%, followed by 26.1% in 'Radio, TV and communication equipment & apparatus' and 21.0% in 'Tobacco products'. On the other hand, the industry group 'Furniture; manufacturing' has shown a positive growth of 18.7% followed by 14.3% in 'Wearing apparel; dressing and dyeing of fur' and 10.5% in 'Coke, refined petroleum products & nuclear fuel'.

As per Use-based classification, the growth rates in May 2013 over May 2012 are (-) 0.4% in Basic goods, (-) 2.7% in Capital goods and 1.5% in Intermediate goods. The Consumer durables and Consumer non-durables have recorded growth of (-) 10.4% and 1.7% respectively, with the overall growth in Consumer goods being (-) 4.0%.

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First Published: Jul 12 2013 | 6:28 PM IST

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