India's factory output falls to 2% in June as manufacturing slows

The manufacturing segment constitutes the bulk of the IIP at 77.6%

Industrial output slowed to a 3-month low of 2 per cent in June compared to May’s seven-month high of 4.5 per cent, as capital goods production contracted and overall manufacturing growth slipped.

The growth rate was in line with the economists’ expectations. The index of industrial production (IIP) had last contracted in March, and is expected to remain muted, owing to weak exports, rural distress, credit constraints and uncertainty over the election outcome, according to economists. Manufacturing output, which had risen by 4.5 per cent in May, took a hit in June, rising by only 1.2 per cent, showed data released