Inflation cools but industry output slows a bit

Inflation cools but industry output slows a bit

Industrial output expands by 6.6%

CPI inflation was at 3.58 per cent in October 2017 and has remained above RBI's targeted rate of 4 per cent since then. (PTI File Photo. For representation purpose)

Consumer inflation came down to a 10-month low of 3.69% in August mainly backed by a fall in prices of kitchen items, including fruits and vegetables, official data showed on Wednesday.

Production from factories, however, came down on a month-on-month basis from 6.9% in June to 6.6% in July dragged by the poor performance of capital goods sector, growth in which came down to 3% from 9.6% last month.

Capital goods is barometer of investment in the economy. The consumer durables sector recorded an impressive 14.4% growth in July ahead of the festive season. Manufacturing also recorded a growth of 7% in July.

The IIP growth in April-July period was 5.4% compared to 1.7% year ago.

In terms of industries on year-on-year basis, 20 out of the 23 industry groups in the manufacturing sector showed a positive growth during the month of July as compared to the corresponding month of the previous year.

The industry group ‘Manufacture of furniture’ has shown the highest positive growth of 42.7% followed by 30.8% in ‘Manufacture of computer, electronic and optical products’ and 28.4% in ‘Manufacture of tobacco products’.

On the other hand, the industry group ‘Manufacture of paper and paper products’ and ‘Printing and reproduction of recorded media have shown the highest negative growth of (-) 2.7% followed by (-) 0.9% in ‘Manufacture of machinery and equipment.

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