Index of Industrial Production eases at 1.7% in May
From the past two months, the Central Statistics Office (CSO) has been calculating IIP data in the new base year of 2011-12 from previous 2004-05 year.
Index of Industrial Production (IIP) or factory output for the month of May 2017 stood at 1.7% compared to 3.1% in April and 2.7% in the month of March 2017.
The general Index for the month of May 2017 stands at 124.3, which is 1.7% higher as compared to the level in the month of May 2016. The cumulative growth for the period April-May 2017 over the corresponding period of the previous year stands at 2.3%.
Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of May 2017 stand at 100.5, 125.1 and 158.7 respectively, with the corresponding growth rates of (-) 0.9%, 1.2% and 8.7% in comparision with a year ago same period. Cumulative growth during April-May 2017 over the corresponding period of 2016 has been 1.1%, 1.8% and 7.1% respectively.
As per Use-based classification, growth rates in May 2017 over May 2016 are 3.4% in Primary goods, (-) 3.9% in Capital goods, 0.7% in Intermediate goods and 0.1% in Infrastructure/ Construction Goods. The Consumer durables and Consumer non-durables have recorded growth of (-) 4.5% and 7.9% respectively.
From past two months, the Ministry has been releasing the new series of Wholesale Price Index (WPI) and IIP with new base year of 2011-12.
According to John from Nirmal Bang, IIP was suppose to come in at 2.1% YoY for May 2017, down from 3.1% YoY in the previous month. Manufacturing is likely to witness a slowdown, as
industries adjusted production ahead of GST roll-out.
"A mixed picture is emerging for industrial growth for May 2017, with a pick up in growth of electricity and automobile production. In Icra's view, IIP growth in May is likely to be considerably lower than the healthy 8% recorded in May, 2016," Icra said.