Index of Industrial Production eases at 1.7% in May

Index of Industrial Production (IIP) or factory output for the month of May 2017 stood at 1.7% compared to 3.1% in April and 2.7% in the month of March 2017. 

The general Index for the month of May 2017 stands at 124.3, which is 1.7% higher as compared to the level in the month of May 2016. The cumulative growth for the period April-May 2017 over the corresponding period of the previous year stands at 2.3%.

source: tradingeconomics.com

Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of May 2017 stand at 100.5, 125.1 and 158.7 respectively, with the corresponding growth rates of (-) 0.9%, 1.2% and 8.7% in comparision with a year ago same period. Cumulative growth during April-May 2017 over the corresponding period of 2016 has been 1.1%, 1.8% and 7.1% respectively.

As per Use-based classification, growth rates in May 2017 over May 2016 are 3.4% in Primary goods, (-) 3.9% in Capital goods, 0.7% in Intermediate goods and 0.1% in Infrastructure/ Construction Goods.  The Consumer durables and Consumer non-durables have recorded growth of (-) 4.5% and 7.9% respectively.

From past two months, the Ministry has been releasing the new series of Wholesale Price Index (WPI) and IIP with new base year of 2011-12. 

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According to John from Nirmal Bang, IIP was suppose to come in at 2.1% YoY for May 2017, down from 3.1% YoY in the previous month. Manufacturing is likely to witness a slowdown, as
industries adjusted production ahead of GST roll-out. 

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"A mixed picture is emerging for industrial growth for May 2017, with a pick up in growth of electricity and automobile production. In Icra's view, IIP growth in May is likely to be considerably lower than the healthy 8% recorded in May, 2016," Icra said.