IIP growth slows to 1.7% in January 2019Date: 13 March 2019 Tags: Industries
According to data released by Central Statistics Office (CSO), factory output measured in terms of Index of Industrial Production (IIP) slowed in January 2019 growing by just 1.7%.
The slowdown was mainly due to deceleration in the manufacturing, electricity, and capital goods sectors. This was for second time in three months IIP saw growth slip below the 2%, with previous occurrence was 0.32% growth in November 2018. Growth in IIP was at 2.6 in December 2018.
Breakaway of January 2019 IIP
- Mining and quarrying sector: It was one of only major sectors that saw growth accelerating, from contraction of 0.39% in December 2018 to growth of 3.9% in January. 2019.
- Manufacturing sector: It saw growth slowing to 1.3% in January from 2.65% in December Electricity sector: It saw growth slowing to 0.8% from 4.45% over the same period
- Capital goods sector: It contracted 3.2% in January, down from a growth of 5.9% in the previous month.
- Construction sector: It witnessed strongest growth of all the major sectors, of 7.9%, but this was still significantly slower than the 10% seen in December.
- Consumer sector: It also saw growth slowing, with growth in consumer durables sector slowing to 1.8% and in consumer non-durables sector to 3.8% in January, from 2.93% and 5.35%, respectively, in the previous month.
Index of Industrial Production (IIP)
- It is composite indicator that measures short-term changes in volume of production of basket of industrial products during given period with respect to chosen base period.
- It is released on monthly basis by Central Statistical Organization (CSO), Ministry of Statistics and Programme Implementation (MoSPI). Base year is 2011-12.
- It comprises 407 individual items and sector wise, these items fall into three categories-Manufacturing (405 items), Mining (1 items) & Electricity (1 item).
- The separate weightages of the three sectors are 77.63%, 14.37%, 7.9% respectively. In IIP, combined weightages of eight core Industries is 40.27%.
- In use wise composition, these 407 individual items are divided into capital goods, basic goods, intermediate goods and consumer goods.
- Further, consumer goods are divided into consumer durables and consumer non-durables. In it, maximum weight is of basic goods, followed by Consumer Goods, followed by Intermediate and Capital Goods.