IIP contracts 3.2% in November; retail inflation rises to 5.61% in Dec

By: | Updated: January 12, 2016 7:40 PM

After scaling a five-year-high growth of 9.9% in October, industrial output contracted 3.2% in November, its first drop since October 2014, showed the official data released on Tuesday.

iip, iip data, iip india, iip index, Industrial output growth, inflation, CPI inflation, manufacturing, manufacturing growth in india, manufacturing growth in india 2015After scaling a five-year-high growth of 9.9% in October, industrial output contracted 3.2% in November, its first drop since October 2014, showed the official data released on Tuesday. (Reuters)

After scaling a five-year-high growth of 9.9% in October, industrial output contracted 3.2% in November, its first drop since October 2014, showed the official data released on Tuesday. Retail inflation inched up to 5.61% in December from 5.41% in the previous month, as food inflation rose to 6.40% last month, compared with 6.07% in November.

Manufacturing hit -4.4% in November, compared with 4.7% a year before. Mining rose just 2.3% in November, against 4% a year earlier, while electricity production barely rose (0.7% in Novemver against 10% in the same period last fiscal), the data showed. Importantly, the output of capital goods, a gauge for fixed corporate investment, shrank 24.4% in November, against a 7% expansion a year earlier. Consumer goods production rose only 1.3% in November even on a favourable base (The segment had contracted by 1.6% a year earlier). Still, the index of industrial production (IIP) grew 3.9% in the April-November period, compared with 2.5% a year earlier, thanks to a better print of the IIP earlier this fiscal.

The latest contraction brings to the fore the fluctuation in the IIP reading and reinforces fears that a sustained industrial recovery is still away.

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