Factory output shrinks 1.5% in January

Factory output shrinks 1.5% in January

Factory output shrinks 1.5% in January

Led by a sharp fall in manufacturing sector, country’s industrial output contracted 1.5% in January. This is the third consecutive month of decline in the factory output underlining a weak start of the calendar year for the economy.

Manufacturing output fell 2.8% in January, within manufacturing, the capital goods output fell 20.4%. Capital goods is barometer of investment in the economy and the data shows it has remained sluggish, despite the government claim that the economy is doing well.

Production in mining was up 1.2% and electricity 6.6% in January but consumer goods output remained stagnant. Consumer durables showed a growth of 5.8% in January but consumer non-durable contracted of 3.1%.

The government data showed 10 out of the 22 industry groups in the manufacturing sector showed negative growth during January.

Industry demanded action from the government with ASSOCHAM saying, the government must back its promises made in the Budget with clear action on the ground by making compliances easy and efficient.

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