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IIP hits 7-month low
Why in the news ?
- Industrial output growth, however, slipped to a seven-month low of 3.2 per cent in May due to weaker growth in manufacturing, intermediate and consumer non-durables, Central Statistics Office data showed.
Details
- Industrial growth, measured by the index of industrial production (IIP), grew at 3.2 per cent in May against 4.8 per cent in April and 2.9 per cent in May last year.
- The manufacturing sector, with 77 per cent share, recorded a growth of 2.8 per cent in May against 5.3 per cent in April and 2.6 per cent in the year ago month.
- The consumer non-durables sector was the worst performer with a growth rate of – 2.6 per cent as against a growth of 9.7 per cent year ago and 7.9 per cent growth in previous month.
- The mining sector expanded by 5.7 per cent, up from 4 per cent in April this year and 0.3 per cent in year-ago period.
- The industry group ‘Other manufacturing’ recorded the highest negative growth of (-) 31.9 per cent followed by (-) 15.6 per cent in ‘Manufacture of tobacco products’ and (-) 12.8 per cent in ‘Manufacture of wearing apparel’.
IIP
- The Index of Industrial Production (IIP)is the number denoting the condition of industrial production during a certain period.
- IIP shows the status of industrial activity, you can find out if the industrial activity has increased, decreased or remained same.
- It is important for the IIP to reflect true industrial trends, which in turn has an impact on the policy decision-making.
- These figures are calculated in reference to the base year. Currently the base year is 2011-12.
- Index of Industrial Production (IIP) is released by the Central Statistics Office (CSO) of the Ministry of Statistics and Programme Implementation.
- It dose not consider measuring of informal sector activity . Same with the PMI
Source
The Hindu.