ICRA expects industrial growth to remain sluggish in Sept
Updated: Oct 14, 2013 05:43:04pm
New Delhi, Oct 14 (KNN) Industrial growth will continue to remain sluggish in September as well, after disappointing performance in August this fiscal when the factory output grew just by 0.6 per cent, ICRA said.
“Overall, ICRA expects industrial growth to remain sluggish in September 2013,” the research agency ICRA said.
ICRA also said that improved demand conditions in advanced economies and a weaker Rupee helped merchandise exports to grow by 12 per cent in Q2 FY14, led by sectors such as apparel, textiles etc.
“Going forward, capacity constraints in some of these sectors may prevent a further substantial improvement in exports,” it added.
Moreover, the duration of the partial US Government shutdown since October 1, 2013 may have some impact on despatches of Indian exports in the on-going month.
Commenting on the index of industrial production (IIP) data released last week, ICRA said manufacturing output declined by 0.1 per cent in year-on-year terms in August 2013 as compared to the revised 3.2 per cent growth in July 2013.
The performance weakened despite the continued double-digit growth of merchandise exports (13.0 per cent in August 2013; 11.6 per cent in July 2013 in nominal US Dollar terms), highlighting the weak domestic consumption impulses and investment momentum.
As many as eight sub-sectors of the manufacturing sector displayed contraction in August 2013, lower than the number in June 2013 and July 2013.
The contraction witnessed by machinery and equipment worsened to 15.5 per cent in August 2013 from 11.9 per cent in July 2013, recording a contraction for the thirteenth consecutive month.
IIP rose by a lower-than-expected 0.6 per cent in August 2013 in year-on-year terms, as compared to the 2.0 per cent rise in August 2012.
ICRA Limited (formerly Investment Information and Credit Rating Agency of India Limited) is an independent and professional investment information and credit rating agency. (KNN/SD)
“Overall, ICRA expects industrial growth to remain sluggish in September 2013,” the research agency ICRA said.
ICRA also said that improved demand conditions in advanced economies and a weaker Rupee helped merchandise exports to grow by 12 per cent in Q2 FY14, led by sectors such as apparel, textiles etc.
“Going forward, capacity constraints in some of these sectors may prevent a further substantial improvement in exports,” it added.
Moreover, the duration of the partial US Government shutdown since October 1, 2013 may have some impact on despatches of Indian exports in the on-going month.
Commenting on the index of industrial production (IIP) data released last week, ICRA said manufacturing output declined by 0.1 per cent in year-on-year terms in August 2013 as compared to the revised 3.2 per cent growth in July 2013.
The performance weakened despite the continued double-digit growth of merchandise exports (13.0 per cent in August 2013; 11.6 per cent in July 2013 in nominal US Dollar terms), highlighting the weak domestic consumption impulses and investment momentum.
As many as eight sub-sectors of the manufacturing sector displayed contraction in August 2013, lower than the number in June 2013 and July 2013.
The contraction witnessed by machinery and equipment worsened to 15.5 per cent in August 2013 from 11.9 per cent in July 2013, recording a contraction for the thirteenth consecutive month.
IIP rose by a lower-than-expected 0.6 per cent in August 2013 in year-on-year terms, as compared to the 2.0 per cent rise in August 2012.
ICRA Limited (formerly Investment Information and Credit Rating Agency of India Limited) is an independent and professional investment information and credit rating agency. (KNN/SD)
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