February 10, 2012 3:01 PM

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Industrial production grows by just 1.8 per cent

Industrial production grew by just 1.8 per cent year-on-year in December 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 was at 8.1 per cent in December 2010.Output of the manufacturing sector, that 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 official data released today.Besides, capital goods sector witnessed a contraction of 16.5 per cent, against a growth of 20.2 per cent in the samemonth 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 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.

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