Dashing hopes of a recovery, industrial production contracted 2.2 per cent in June, the second straight monthly drop, on account of a poor show by the manufacturing, mining and power sectors and a decline in production of capital goods.

Factory output measured in terms of the Index of Industrial Production (IIP) had contracted 2 per cent in June last year, as per the data released by the Central Statistics Office.

Meanwhile, factory output for May was revised downwards to a decline of 2.82 per cent from a provisional 1.6 per cent dip in production.

During April-June this year, factory output contracted 1.1 per cent, down from a decline of 0.2 per cent in the same period last fiscal. The manufacturing sector, which constitutes over 75 per cent of the index, contracted 2.2 per cent in June compared with a 3.2 per cent drop a year earlier.

During April-June, the sector saw a decline of 1.2 per cent compared with a contraction of 0.8 per cent.

Mining output declined by 4.1 per cent in June, compared with a dip of 1.1 per cent.

In April-June, the sector declined by 4.5 per cent compared with a contraction of 1.6 per cent.

Power generation was flat in June compared with a growth of 8.8 per cent in the same month in 2012.

Power generation in the first quarter grew 3.5 per cent compared with an expansion of 6.4 per cent.

Output of capital goods contracted 6.6 per cent during the month compared with a decline of 27.7 per cent a year earlier.

During April-June, capital goods production dipped 3.3 per cent compared with a production drop of 20.1 per cent in same period last year.

Among the 22 industry groups in the manufacturing sector, 13 recorded negative growth in June.

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