India's factory output declined again in December by ( - )1. 3 percent but was somewhat better than the ( - )3. 42 percent dip registered in the month before, official data showed on Friday. There was a growth of 3. 6 percent in December 2014.
As per data on index of industrial production (IIP) released by the Central Statistics Office, the cumulative growth of the country's factory output logged a 3. 1 percent rise in the first nine months of the current fiscal year.
Cumulative growth during the corresponding period of last fiscal stood at 2. 6 percent.
December IIP was dragged lower by a ( - )2. 4 percent drop in manufacturing activity. Between the other broader indices, electricity production rose by 3. 2 percent, while that for mining was up by 2. 9 percent.
The cumulative growth of the electricity and mining indices for the first nine months of the current fiscal were 4. 5 percent and 2. 3 percent, respectively. Manufacturing's cumulative growth stood at 3. 1 percent.
In addition, the data revealed that among the six use - based classifications of the index, the output of consumer durables segment expanded by 16. 5 percent in December. The consumer goods segment accelerated by 2. 8 percent.
However, capital goods segment, which is a key indicator of economic activity plunged by ( - )19. 7 percent. The output of consumer non - durables was lower by ( - )3. 2 percent.
The basic and intermediate goods' output inched - up by 0. 5 percent and 0. 9 percent, respectively.
Overall, only 10 out of the 22 industry groups in the manufacturing sector have shown negative growth during the month under review.
Segment - wise, growth was witnessed in 'woollen carpets' (184. 1 percent), 'telephone instruments including mobile phone and accessories' (141. 1 percent), 'Di Ammonium Phosphate' (46. 8 percent), 'wood furniture' (36. 9 percent), 'commercial vehicles' (28. 7 percent) and 'gems and jewellery' (27. 1 percent).
Moreover, high negative growth was reported in the 'cable, rubber insulated' ( - 85. 2 percent), 'heat exchanger' ( - 68. 8 percent), 'cement machinery' ( - 60. 2 percent), 'grinding wheels' ( - 37. 4 percent), 'boilers' ( - 22. 7 percent) and 'sponge iron' ( - 22. 5 percent).