India’s industrial output stagnated within the month of February, including to a number of indicators now pointing to weakening financial momentum.
The Index of Industrial Manufacturing rose a mere 0.1 % in February 2019, in contrast with development of 1.7 % in January 2019 and 6.9 % in the identical month a 12 months in the past, based on authorities information launched on Friday.
A Bloomberg ballot of 33 economists had forecast IIP development at 2 %. Over the April 2018 to February 2019, industrial output development stands at Four %.
The manufacturing sector is displaying indicators of weak point amidst in slowdown in demand for gadgets resembling two-wheelers and passenger automobiles.
- Manufacturing output contracted by 0.Three % in February 2019 in comparison with 3.9 % in January.
- Ten of the 23 business teams within the manufacturing sector confirmed constructive development
- Development in mining stood at 2 % in February as towards 1.Three % in January
- Electrical energy technology grew by 1.2 % in February in comparison with 0.Eight % within the earlier month.
Use Based mostly Classification
Industrial output, as categorised by the end-use of products, confirmed contraction in capital items. This isn’t totally unanticipated given excessive development final 12 months and within the early a part of this 12 months seen on this phase.
- Main items output development rose by 1.2 % in February 2019 versus 1.Four % development in January.
- Capital items contracted by 8.Eight % in February in comparison with a contraction of three.2 % within the earlier month.
- Infrastructure items manufacturing rose by 2.Four % in comparison with 7.9 % within the earlier month.
- Client durables output rose by 1.2 % in comparison with 1.Eight % development in January 2019.
- Client non-durables grew by 4.Three % towards a development of three.Eight % in January.