IIP contraction slows to 16.6% in June amid industrial activity relaxation

Seasonally adjusted, industrial production grows nearly 24% month-on-month

The index of industrial production (IIP) contracted by 16.6 per cent in June compared to 33.8 per cent in May and a record 57.6 per cent slide in April. This is likely to pull down first-quarter gross domestic product  of 2020-21, the data for which would be released this month-end.

The conditional relaxation in industrial activity leading to a graded pick-up was evident from the numbers. Contraction in industrial production slowed further in June, with industrial production growing 23.9 per cent compared to May, seasonally adjusted. 
 

Goldman Sachs said the sequential pick-up was supported by all sub-indices. The slowing of contraction