labels: Industry - general
June industrial production growth moves up to 5.4 per cent from 4.1 per cent in May news
12 August 2008

Mumbai: Industrial production in the country grew at 5.4 per cent in June, slightly higher than the 4.1 per cent (revised) recorded in May, but lower than the June 2007 production growth of 8.9 per cent.

The index of industrial production (IIP) figures for the mining, manufacturing and electricity sectors for June 2008 stood at 2.9 per cent, 5.9 per cent and 5.4 per cent respectively. However, rising interest rates continued to drag down manufacturing sector.

Growth of six core infrastructure industries, which account for 26.68 per cent of industrial production has slowed down to 3.4 per cent in June as compared to 5.2 per cent in the year-ago period due to the bleak performance of all sectors except coal.

Production of consumer non-durables grew 12.2 per cent in June against 6.3 per cent the same month a year ago. Consumer goods sector grew at 10 per cent while mining growth was at 2.9 per cent year-on-year. Electricity generation grew at 2.6 per cent.

The manufacturing sector recorded a growth of 5.9 per cent against 9.7 per cent in June last year.

However, capital goods output, which is crucial for future industrial growth, declined substantially to 5.6 per cent from 23.1 per cent in June 2007 and to 6.5 per cent from 19.1 per cent in the first quarter.

May industrial production growth has been revised to 4.1 per cent against 3.8 per cent earlier.


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June industrial production growth moves up to 5.4 per cent from 4.1 per cent in May