Industrial production bounces back in November

Capital goods, manufacturing sectors push growth

Industrial production bounced back in November, growing 3.8 per cent. The recovery was led by the capital goods sector, which grew 6.5 per cent against 0.1 per cent in the same month last year, according to official data released on Monday. If the growth sustains in subsequent months, it could indicate a revival in the investment cycle in the economy.

The cumulative industrial production growth for April-November 2014-15 now stands at 2.2 per cent against 0.1 per cent in the corresponding period last year.

The data, however, show consumption spending remains low in the economy and did not pick up even in the festive season.

Consumer durables showed de-growth of minus 14.5 per cent in November 2014. Consumer non-durables, however, grew 6 per cent. Total consumer goods production continued to shrink, contracting minus 2.2 per cent against minus 8.9 per cent in November, 2013.

Manufacturing output, too, rebounded in November, growing 3 per cent, against minus 2.6 per cent in November, 2013. In terms of industries, 16 out of the 22 industry groups in the manufacturing sector showed positive growth in November, 2014, as compared to the corresponding month of the previous year.

Wearing apparel, dressing and dyeing of fur showed highest positive growth of 19.8 per cent, followed by 17.5 per cent in motor vehicles, trailers & semi-trailers, and 12.8 per cent in fabricated metal products, except machinery as well as equipment.

Highest negative growth was in the industry group radio, TV and communication equipment as well as apparatus that decelerated minus 60 per cent, followed by minus 26.3 per cent in office, accounting as well as computing machinery and minus 17.4 per cent in tobacco products.

Electricity generation grew 10 per cent in November, and was even better in April-November at 10.7 per cent.

“While it is heartening to see the growth in manufacturing in November, however it does come over the negative base…. We are hoping that Government will continue to push reforms so as to revive manufacturing sector’s growth on a sustainable basis” FICCI President Jyotsna Suri said. Commenting on the November Index, Confederation of Indian Industry Director-General Chandrajit Banerjee stated he hoped that going forward, the incipient signs of revival would transform into a firm recovery, especially as there is some progress in investment intentions and business confidence is on the ascendant.

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