Industrial production jumps in Oct, IIP growth at 11-month high of 8.1%

Wednesday,   12-Dec-2018   05:38 PM (IST)

Industrial output growth shot up in October, rising to an 11-month high of 8.1 per cent as manufacturing growth accelerated and capital goods production rose by the highest margin in the current financial year.The two-other sectors of electricity and mining output also saw significant jumps in the latest month, data for which was released on Wednesday.In October, growth in the Index of Industrial Production (IIP) had accelerated up from the 4.46 per cent growth in September. This is largely attributable to the manufacturing segment, which constitutes the bulk of the index at 77.6 per cent, growing by nearly 8 per cent in October, almost double the 4.61 per cent in September.Industrial output growth shot up in October, rising to an 11-month high of 8.1 per cent as manufacturing growth accelerated and capital goods production rose by the highest margin in the current financial year.The two-other sectors of electricity and mining output also saw significant jumps in the latest month, data for which was released on Wednesday.In October, growth in the Index of Industrial Production (IIP) had accelerated up from the 4.46 per cent growth in September. This is largely attributable to the manufacturing segment, which constitutes the bulk of the index at 77.6 per cent, growing by nearly 8 per cent in October, almost double the 4.61 per cent in September.The sensitive capital goods segment, which connotes investments, saw an output jump to 16.8 per cent, up from the much lower 6.5 per cent rise in the previous month. Driven by machinery and heavy transport, capital goods production has grown every month of the current fiscal year.In August, consumer durables also rose by a high 17.2 per cent, whereas in July, the segment had shown signs of firmly escaping the spell of low growth and contraction seen over the first part of the year. Infrastructure goods stood out as the only use-based category recording a moderation in growth in October 2018 relative to the previous month, despite the sharp improvement in the expansion of cement output.On the other hand, mining output rose by 7 per cent in October, against a marginal 0.1 per cent rise in September, in line with expectations.As a result, electricity generation also rose. Generation grew 10.8 per cent in the latest month, up from the 8.23 per cent cent rise in September. But this may again go down as data from the Central Electricity Authority (CEA) indicates that the growth of electricity generation halved to 4.6 per cent in November as compared to October.