July IIP growth slows to 0.1%; FM terms data disappointing
The figure for April were also revised downward to -1.3% from -0.9% announced earlier, according to the data released by the Central Statistics Office on Wednesday.
Although industrial output growth recovered from a 1.8% contraction in June, it tumbled below a 0.5% expansion forecast by economists for July. The production shrank 0.1% in the first four months of the current fiscal, compared with a 6.1% expansion a year before. It had grown at 3.7% in July last year.
Finance minister P Chidambaram said the data revealed the economy’s continued disappointing performance. He, however assured that the government is intensively engaged with the industry on the constraints in production and will continue its efforts to find practical solutions. Chidambaram pointed to the mixed picture in sector-wise performance. There were gains in areas like as manufacturing and capital goods but slippages in others like electricity and consumer goods. “There is no clear pattern yet”, an official statement said quoting Chidambaram. While the general index for July, 2012 (over July, 2011) is positive at 0.1, it is too early to claim that this
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