Industrial production grew by just 1.8 per cent year-on-year in December 2011 due to contraction in mining and capital goods sectors and a lower manufacturing sector growth.

Factory output growth, as measured by the Index of Industrial Production (IIP), was at 8.1 per cent in December 2010.

Output of the manufacturing sector, which constitutes over 75 per cent of the index, rose at a lower rate of 1.8 per cent in December, compared to a growth of 8.7 per cent in the same month of 2010, according to the official data released on Friday.

Besides, capital goods sector witnessed a contraction of 16.5 per cent, against a growth of 20.2 per cent in the same month in 2010.

Mining output too contracted by 3.7 per cent in December, against 5.9 per cent growth in the year ago period.

However, power generation witnessed a good growth of 9.1 per cent in December 2011, compared to 5.9 per cent in the year ago period.

During the month, 15 out of 22 industry groups witnessed a positive growth.

During the month output of basic goods went up by 4 per cent, against 7.8 per cent in the year ago period. However, intermediate goods witnessed a contraction of 2.8 per cent, against 8.1 per cent growth in December 2010.

During the April-December 2011, the IIP growth stood at 3.6 per cent, against 8.3 per cent in corresponding period a year ago.

Besides, the IIP figure for November, 2011, has been revised to 5.94 per cent from the provisional estimates of 5.9 per cent.