August IIP Growth Robust At 6.4 Per Cent; September CPI at 4.41 Per Cent

According to the official data released on Monday (October 12), the Index of Industrial Production (IIP) for the month of August came in above street expectations at 6.4 per cent against 0.5 per cent growth a year ago same month. The cumulative growth for the period April-August 2015-16 over the corresponding period of the previous year stands at 4.1 per cent.

The main contributors to the growth were Manufacturing and Capital Goods sectors.

The manufacturing sector, which constitutes over 75 per cent of the index, grew by 6.9 per cent in August 2015 against a contraction of 1.1 per cent in the same month last year. The output of capital goods, a barometer of investment, grew at an impressive rate of 21.8 per cent against a contraction of 10 per cent in the same month last year.

The mining sector growth was at 3.8 per cent in August against 1.2 per cent in the same month last fiscal. Power generation growth slowed to 5.6 per cent in August compared to 12.9 per cent in the same month a year ago.

Overall consumer goods output rose by 6.8 per cent in August compared to a contraction of 6.2 per cent in the month a year ago. The consumer durables goods output expanded at 17 per cent in August compared to a contraction of 15 per cent in the month a year ago whereas the consumer non-durable goods output growth reported flat at 0.4 per cent in August as compared to same month a year ago. The consumer durables goods output grew at 11.4 percent in July compared to a contraction of 20.4 percent in the month a year ago.

The Consumer Price Index (CPI) inflation for September reported 4.41 per cent, much higher than the 3.66 per cent recorded in the month of August.

Urban inflation stood at 3.61 per cent against 2.75 per cent MoM, while rural inflation came in at 5.05 per cent versus 4.47 per cent in August. The government also revised the August CPI number higher to 3.74 per cent from 3.66 per cent earlier.