Factory output growth hits 17-month high of 8.4% in Nov

Factory output growth hits 17-month high of 8.4% in Nov

Factory output growth hits 17-month high of 8.4% in Nov

Industrial production growth zoomed to a 17-month high of 8.4% in November 2017 on the back of robust performance of manufacturing and capital goods sectors.

The factory output, measured in terms of Index of Industrial Production (IIP), grew 5.1% in November 2016, as per data released on Friday by the Central Statistics Office (CSO).

The previous high was recorded at 8.9% in June, 2016. Meanwhile, the IIP growth for October 2017 has been revised downwards to 2% from the provisional estimates of 2.2 released last month.

Manufacturing sector, which constitutes 77.63 per cent of the IIP, recorded an impressive growth of 10.2 per cent in November as compared to 4 per cent a year ago.

The industry group 'Manufacture of pharmaceuticals, medicinal chemical and botanical products' has shown the highest positive growth of 39.5%, followed by 29.1% in computer, electronic and optical products and 22.6% in 'manufacture of other transport equipment'.

Capital goods output, which is a barometer of investment, grew by 9.4% in November as against 5.3% a year ago.

Consumer non-durables, which are mainly fast moving consumer goods (FMCG), showed an output growth of 23.1% against 3.3% in November 2016.

However, the mining sector production growth slowed to 1.1% from 8.1% a year ago.

Electricity generation growth too slowed to 3.9% in November from 9.5% in the corresponding month a year ago.

Production growth of consumer durables, mainly white goods like TVs, refrigerators and washing machines, also slowed to 2.5% from 6.8%.

As per use-based classification, the growth rates in November 2017 are 3.2% in primary goods, 5.5% in intermediate goods and 13.5% in infrastructure/ construction goods.

In terms of industries, 15 of the 23 industry groups in the manufacturing sector have shown positive growth during November 2017 as compared to the same month a year ago.

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