Factory output shrinks by 1.3% in December 2015

New Delhi, Feb 13 (KNN) In the latest data, Index of Industrial Production (IIP) has gone down for the month of December 2015. The contraction in the capital goods sector for seen for the second consecutive month.

Consumer price inflation accelerated to 5.7 per cent in January. And the Index of Industrial Production for December 2015 stood at 183.4, which is 1.3 per cent lower than its level in December 2014.

“The cumulative growth for the period April-December 2015 over the corresponding period of the previous year stands at 3.1 per cent,” according to a statement released by the Ministry of Statistics.

The November 2015 had seen the drastic drop of 3.4 percent in IIP.. The manufacturing sector contracted 2.44 per cent for the second straight month, while mining and electricity sectors grew 2.92 per cent and 3.15 per cent respectively in December.

The capital goods sector, by usage, contracted by 19.69 per cent in December. Consumer durables, however, maintained a strong growth showing, registering a growth of 16.49 per cent in December on the back of 12.5 per cent in November. Consumer non-durables contracted 3.2 per cent while intermediate good grew modestly, by 0.94 per cent in December. (KNN Bureau with PIB Inputs)