Industrial output growth hits a five-year high of 9.8%

Industrial production in the country, based on the general index of industrial production (IIP) expanded by 9.8 per cent in October, the fastest pace in five years, on the back of a spurt in manufacturing activity and electricity generation, quick estimates released by the Central Statistics Office (CSO) showed.

Although the October IIP figures were bolstered by a favourable statistical base, double-digit growth in the manufacturing sector points to a strengthening of industrial recovery, say analysts.

Cumulative growth in industrial production for the seven-month period (April-October 2015-16) stood at 4.8 per cent compared to the level in the corresponding period of the previous financial year.

Production in the mining, manufacturing and electricity sectors recorded growth rates of 4.7 per cent, 10.6 per cent and 9.0 per cent, respectively, compared to October 2014. The three sectors recorded cumulative growth rates of 2.0 per cent, 5.1 per cent and 5.2 per cent, respectively, year-on-year during April-October 2015-16.

Seventeen out of the 22 industry groups in the manufacturing sector have shown positive growth during October 2015. The industry group 'furniture and manufacturing' has shown the highest positive growth of 138.9 per cent, followed by 'office, accounting and computing machinery' 48.4 per cent and 'Radio, TV and communication equipment and apparatus' 47.5 per cent.

On the other hand, the industry group 'publishing, printing and reproduction of recorded media' has shown the highest negative growth of (-)10.2 per cent, followed by (-) 6.8 per cent in 'medical, precision and optical instruments, watches and clocks' and (-) 2.9 per cent in 'coke, refined petroleum products and nuclear fuel'.

Basic goods production increased by 4.1 per cent in October while sector recorded 4.1 per cent growth while capital goods production grew 16.1 per cent production of intermediate goods expanded by 6.7 per cent in October.

Production of consumer durables and consumer non-durables recorded growth rates of 42.2 per cent and 4.7 per cent, respectively, with the overall growth in Consumer goods being 18.4 per cent.

Along with the quick estimates of IIP for October 2015, CSO also revised the estimates of industrial production for July 2015 in the light of the updated data received from the source agencies.