Factory output growth slows to 5-month low of 4.2% in Jun

India's industrial production slowed to a five-month low of 4.2 per cent in June 2024, mainly due to poor performance of the manufacturing sector, though power and mining sectors continue to perform well, as per official data released on Monday.

The factory output growth, measured in terms of the Index of Industrial Production (IIP), was 6.2 per cent in May, 5 per cent in April, 5.5 per cent in March, 5.6 per cent in February and 4.2 per cent in January 2024.

During the April-June period this fiscal, the IIP growth was 5.2 per cent against 4.7 per cent in the same period of the preceding financial year.

India's Index of Industrial Production grew by 4 per cent in June 2023, according to a statement by the Ministry of Statistics & Programme Implementation.

As per the data, the mining output growth accelerated to 10.3 per cent in June against a 7.6 per cent expansion in the year-ago month.

The manufacturing sector's growth decelerated to 2.6 per cent in June compared to 3.5 per cent a year ago.

The power generation increased by 8.6 per cent in June against a growth of 4.2 per cent in the same month of the last year.

As per use-base classification, the capital goods segment growth fell to 2.4 per cent in June 2024 from 2.9 per cent in the year-ago period.

In June this year, consumer durables output expanded 8.6 per cent compared to a 6.8 per cent contraction in June 2023.

Consumer non-durable goods production contracted 1.4 per cent during the reporting month against a growth of 0.5 per cent in May 2023.

According to the data, infrastructure/construction goods reported a growth of 4.4 per cent in June 2024, down from a 13.3 per cent expansion in the year-ago period.

The data also showed that the output of primary goods logged a 6.3 per cent growth in June this year, up from 5.3 per cent a year earlier.

The expansion in the intermediate goods segment was 3.1 per cent in the month under review, lower than the 5.2 per cent recorded a year ago.