Industrial output slipped to 4-month low, contracting 1.2 per cent in February, mainly on account on decline in the manufacturing sector and lower offtake of capital as well as consumer goods.
The Index of Industrial Production (IIP) had registered a growth of 1.99 per cent in February last year. For the 11 month period to February of the last financial year, IIP growth was nearly flat at 0.4 per cent as against 2.6 per cent a year ago. For January, the Central Statistics Office has revised the IIP growth rate to 3.27 per cent from 2.74 per cent in the provisional data released last month.
The previous low was recorded in October when the IIP contracted by 1.87 per cent. Thereafter, it shot up to 5.59 per cent in November. The decline in the IIP in February is mainly on account of 2 per cent contraction in manufacturing sector, which constitutes over 75 per cent of the index. The sector had recorded a meager growth of 0.6 per cent in February, 2016.
Overall, 15 out of 22 industry groups in the manufacturing sector have shown negative growth in February.