Industrial production contracted 2.4 per cent in July this year–its worst performance in eight months. This was mainly due to a fall in output of the manufacturing and capital goods sectors. Factory output, as measured by the Index of Industrial Production, IIP, had grown 4.3 per cent in July last year. Official data released today, showed that the manufacturing sector contracted 3.4 per cent in July, while capital goods output shrank 29.6 per cent. Power generation rose 1.6 per cent in July, while mining sector output increased 0.8 per cent.