IIP alert! Factory output tumbles, now at 1.7% in January 2019 - What you should know

IIP Data: Surprisingly, the Index of Industrial Production (IIP) or factory output of India, has once again shown a downward trend by recording just 1.7% growth rate in January 2019. This is way lower compared to 2.6% growth posted in December 2018. For the latest month, IIP stood at 134.5, which is 1.7% higher as compared to the same month of last year. Cumulatively for April - January 2019 period, IIP growth rate stands at 4.4% compared to the corresponding period of the previous year. 

Under IIP, the Mining, Manufacturing and Electricity sectors for the month of January 2019 stand at 119.2, 135.6 and 150.7 respectively, with the corresponding growth rates of 3.9%, 1.3% and 0.8% as compared to January 2018. Cumulative growth in these three sectors during April- January 2018-19 over the corresponding period of 2017-18 has been 3.2%, 4.4% and 5.9% respectively.

In terms of industries, eleven out of the twenty three industry groups in the manufacturing sector have shown positive growth during the month of January 2019 as compared to the corresponding month of the previous year.

source: tradingeconomics.com
Under the manufacturing sector - food products has shown the highest positive growth of 17.0% followed by 16.4% in wearing apparel and  10.4% in ‘Printing and reproduction of recorded media’. 

On the other hand, furniture has shown the highest negative growth of (-) 12.0% followed by (-) 9.0% in fabricated metal products, except machinery and equipment’ and (-) 6.4 in paper and paper products.

As per Use-based classification, the growth rates in January 2019 over January 2018 are 1.4% in Primary goods, (-) 3.2% in Capital goods, (-) 3.0% in Intermediate goods and 7.9% in Infrastructure/ Construction Goods.

The Consumer durables and Consumer non-durables have recorded growth of 1.8% and 3.8% respectively.