Factory output in May sees a growth of 2.4%

 Industrial production recorded a dismal growth of 2.4 per cent in May, slightly better than (-)0.9 per cent in April, and may prompt RBI to cut interest rates to boost growth.

The Index of Industrial Production (IIP) has slipped to 2.4 per cent in May, 2012 from 6.2 per cent in the same month last year. Data revealed that there was a contraction in April at (-)0.9 per cent, as against 0.1 per cent growth reported earlier.

During the first two months of this fiscal, April-May, the industrial growth rate decelerated sharply to 0.8 per cent from 6.2 per cent in the same period of 2011-12.