Industrial output rises 2.7% in January after the December slump

Industrial production in the country, based on the general index of industrial production, increased by 2.7 per cent in January 2017, against a 0.38 per cent contraction in December 2016, but at a slower pace compared to the 5.65 per cent growth recorded in November 2016.

The January 2017 growth was partly due to the base effect as output had shrunk 1.59 per cent in January 2016.

The cumulative growth for the period April-January 2016-17 over the corresponding period of the previous year stands at 0.6 per cent, quick estimates by the Central Statistics Office show.

Production in the mining, manufacturing and electricity sectors increased by 5.3 per cent, 2.3 per cent and 3.9 per cent, respectively, in January 2017 while cumulative growth in these three sectors during April-January 2016-17 stands at 1.4 per cent, (-) 0.2 per cent and 5.0 per cent, respectively.

Nine out of the 22 industry groups in the manufacturing sector have recorded growth during January 2017 compared to the corresponding month of the previous year.

The manufacturing sector, which accounts for a little over 75 per cent of the total index of industrial production (IIP), grew 2.3 per cent in January, up from a contraction of (-) 2.94 per cent in January 2016 and (-) 1.97 per cent in December 2016 but slower than November's 5.47 per cent pace.

The industry group 'electrical machinery and apparatus' has shown the highest positive growth of 42.4 per cent, followed by 'radio, TV and communication equipment and apparatus' 21.8 per cent and 'basic metals' 12.4 per cent.

On the other hand, the industry group 'office, accounting and computing machinery' has shown the highest negative growth of (-) 16.0 per cent, followed by 'food products and beverages' (-) 14.8 per cent and 'other transport equipment' (-) 13.4 per cent.

Basic goods production increased by 5.3 per cent in January 2017 while capital goods production increased by 10.7 per cent and intermediate goods production at a negative rate of (-) 2.3 per cent during the month.

Production of consumer durables and consumer non-durables have recorded growth rates of 2.9 per cent and (-) 3.2 per cent, respectively, while the overall growth in consumer goods stands at (-) 1.0 per cent.