Factory output growth declines to 4.3% in July

New Delhi, September 12

India’s industrial production growth slowed to 4.3% in July, dragged mainly by manufacturing sector’s poor show, according to government data released today.

Factory output, as measured by the Index of Industrial Production (IIP), had expanded by 6.5% in July 2018. The industrial output growth was recorded at 1.2% in June and 4.6% in May this year.

According to data released by the Ministry of Statistics and Programme Implementation, industrial output grew at 3.3% in April-July period this fiscal, down from 5.4% growth in the same period a year ago.

The IIP data showed a significant slowdown in the manufacturing sector, which grew at 4.2% in July 2019 as compared to 7% a year ago.

Capital goods segment, which is a barometer of investment, saw a contraction of 7.1% in July compared to 2.3% rise a year ago. Mining growth was 4.9% in July as compared to 3.4% in the same month last fiscal.

The expansion in the power generation sector stood at 4.8% in July, compared to 6.6% a year earlier. As per use-based classification, the growth rates in July 2019 over July 2018 are 3.5% in primary goods, 13.9% in intermediate goods and 2.1% in infrastructure/construction goods. — PTI

Inflation rises to 10-month high 

New Delhi: Driven by costlier food items, retail inflation rose to 10-month high of 3.21% in August. It may prompt the RBI for further rate cut. Inflation based on the Consumer Price Index stood at 3.15% in July this year. Compared year over year, it was 3.69% in August 2018.  The August 2019 retail inflation rate is the highest since October 2018, when it was 3.38%.  Inflation in the food basket was 2.99%, up from 2.36% in July.  PTI