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  • IIP growth down to 5.6 pc on contraction in cap goods’ output

    Published on October 12, 2010

    Industrial growth slowed down to 5.6 pc in August from 10.6 pc in the corresponding period last year, on the back of a 2.6 pc contraction in the capital goods production.

    Among the main industry segments, manufacturing activity declined to 5.9 percent from 10.6 percent a year ago.

    Mining sector growth was at 7 percent as compared to 11 percent in August last year.

    Electricity generation growth, too, slowed down to one per cent from 10.6 percent in August last year.

    Capital goods sector contracted by 2.6 percent in August, in comparison to 9.2 percent growth in the year-ago period, official data released said in New Delhi on Tuesday.

    Also, consumer non-durables, which are mainly fast moving consumer goods (FMCG), recorded a negative growth of 1.2 percent, in comparison to an expansion of 6.1 percent in the same month last year.

    Consumer durables was the only segment of goods, which saw an output growth over the year-ago period.

    In August consumer durables expanded by 26.5 percent, as compared to 24.7 percent in the year-ago period.

    Of the 17 industry groups, as many as 14 have shown positive growth during the month of August.

    The industrial expansion figure for July was revised upwards to 15.2 percent from the earlier estimates of 13.8 percent.

    Industrial growth for the first five months of this fiscal stood at 10.6 percent in comparison to 5.9 percent growth in the same period a year ago.

    Experts had projected that the industry growth might slip to single-digit level because of the high base effect of last year.

    Moderate growth in core sectors, which accounts for 26.7 percent of the total industrial output, was also seen pulling down growth in factory output in August, experts said.

    The core sector, which includes crude oil, petroleum refinery products, coal, electricity, cement and finished steel, grew by 3.7 percent in August.

    The growth had slowed from 3.9 percent recorded in July.

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