Slowdown Blues: Industrial output shrinks 4.3% in September

Industrial output in September fell by 4.3 per cent due to poor show across all sectors, government data released on Monday showed. The Index of Industrial Production (IIP) had declined by 1.1 per cent in August 2019. The cumulative growth for the April-September 2019 period also slipped to 1.3 per cent, down from 2.4 per cent in the previous month.

The indices of industrial production for the mining, manufacturing and electricity sectors showed de-growth of 8.5 per cent, 3.9 per cent and 2.6 per cent, respectively in the month of September 2019.

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Moreover, the IIP estimates for August 2019 have undergone the first revision and those for June 2019 have undergone the final revision in light of the updated data received from the source agencies.

In terms of industries, seventeen out of the twenty-three industry groups in the manufacturing sector showed negative growth during the month of September 2019, the government data said.

"The industry group 'Manufacture of motor vehicles, trailers and semitrailers' has shown the highest negative growth of (-) 24.8 percent followed by (-) 23.6 percent in 'Manufacture of furniture' and (-) 22.0 percent in 'Manufacture of fabricated metal products, except machinery and equipment'," a government statement said.

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Based on use-based classification, primary goods reported a decline of 5.1 per cent in factory output during September 2019. Meanwhile, capital goods saw industry output fall by 20.7 per cent. Meanwhile, output of infrastructure and construction goods declined by 6.4 per cent. Only intermediate goods reported an increase of 7 per cent during September 2019.

Both consumer durables and consumer non-durables recorded de-growth of 9.9 per cent and 0.4 per cent, respectively.