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India's industrial output remains subdued in July

India Infoline News Service/ 14:28 , Sep 12, 2012

IIP for July 2012 came in at 0.1% versus expectations of 0.5% growth.

India's industrial production barely moved in July, as weakness persisted in the critical areas of the economy such as manufacturing, mining and capital goods amid sticky inflation, high interest rates, fragile currency, global slowdown and policy paralysis.


The combined output of Factories, Mines and Power Utilities, as measured by the index of industrial production (IIP), inched up by a measly 0.1% in July 2012 as against expectations of a 0.5% growth.


India's industrial output was at 3.7% in July last year.


The Commerce Ministry said today that IIP for June was left unchanged at -1.8%.

The cumulative growth for the period April-July 2012-13 stands at (-) 0.1% versus a decent 6.1% expansion in the year-ago period.


The IIP for July 2012 stands at 167.3 as against 167.2 in July 2011. It was at 168.4 in June 2012.


The monthly growth rates in the three sectors of Mining, Manufacturing and Electricity for the month under review are (-)0.7%, (-)0.2% and 2.8%, respectively.


As per “use-based” classification there have been negative growths in Capital Goods (-5.0%) and Intermediate Goods (-1.1%) whereas positive growths have been achieved in Basic Goods (1.5%), Consumer Durables (1.4%) and Consumer Non-durables (0.1%).


Sector  July 2012 June 2012 July 2011
Manufacturing  -0.2%  -3.1%  3.1% 
Mining  -0.7%  0.2%  0.7% 
Electricity  2.8%  8.8%  13.1% 
Overall  0.1%  -1.8%  3.7% 
Indices for July 2012 are Quick Estimates.

Sector  July 2012 June 2012 July 2011
Capital Goods  -5.0%  -28.1%  -13.7% 
Basic Goods  1.5%  4.2%  10.0% 
Intermediate Goods  -1.1%  0.6%  -0.1% 
Indices for July 2012 are Quick Estimates.

Sector  July 2012  June 2012 July 2011 
Consumer Non-durables  0.1%  -0.1%  4.1% 
Consumer Durables  1.4%  9.2%  9.0% 
Consumer Goods  0.7%  4.1%  6.4% 
Indices for July 2012 are Quick Estimates.

Markets just before IIP Data:

Nifty, Sensex: 5,410; 17,929.

Rupee: 55.23.

10-year Yield: 8.1862%.

Markets just after IIP data:

Nifty, Sensex: 5,411; 17,932.

Rupee: 55.23.

10-year Yield: 8.1892%.

Markets at 12:15 pm (IST):

Nifty, Sensex: 5,412; 17,945.

Rupee: 55.25.

10-year Yield: 8.2028%.

 



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