Index of Industrial Production growth slows to 2.2% in October month

Index of Industrial Production (IIP) or factory output for the month of October 2017 stood at 2.2% compared to 4.1% in the month of September 2017 and 4.50% in August 2017.

The General Index for the month of October 2017 stands at 123.0, which is 2.2% higher as compared to the level in the month of October 2016. The cumulative growth for the period April-October 2017 over the corresponding period of the previous year stands at 2.5%.

source: tradingeconomics.com

The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of October 2017 stand at 101.2, 124.3 and 149.8 respectively, with the corresponding growth rates of 0.2%, 2.5% and 3.2% as compared to October 2016. 

In terms of industries, ten out of the twenty three industry groups ( as per 2-digit NIC-2008) in the manufacturing sector h ave shown positive growth during the month of October 2017 as compared to the corresponding month of the previous year. 

As per Use-based classification, the growth rates in October 2017 over October 2016 are 2.5% in Primary goods, 6.8% in Capital goods, 0.2% in Intermediate goods and 5.2% in Infrastructure/ Construction Goods.  The Consumer durables and Consumer non-durables have recorded growth of   (-) 6.9% and 7.7% respectively.

Analysts at Nirmal Bank expected IIP at 2.8% YoY for October 2017, down from 3.2% in the previous month.

They said, "Lower number of working days in October 2017 on account of the Diwali festival, and pre-festive season channel stocking is likely to impart a downward bias to the October 2017 reading."