Industrial output fell 1.2% in Feb on poor show in capital goods

Factory output, measured by the IIP, had expanded by a revised 3.3 per cent in January

Industrial output had contracted 1.2 per cent in February from a year earlier, driven down by a contraction in capital goods production, government data showed on Wednesday.

Factory output, measured by the Index of Industrial Production (IIP), had expanded by a revised 3.3 per cent in January. This was mainly due to a bounce-back in the consumer and capital goods  sectors. Industrial output had contracted 0.1 per cent in December, on account of the cash crunch after demonetisation of high value currency notes.

Manufacturing, three-fourth of the index, fell by two per cent in February, as compared to