India's factory output declined again in December by (-)1.3 per cent but was somewhat better than the (-)3.42 per cent dip registered in the month before, official data showed on Friday. There was a growth of 3.6 per cent 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 per cent rise in the first nine months of the current fiscal year.
Cumulative growth during the corresponding period of last fiscal stood at 2.6 per cent.
December IIP was dragged lower by a (-)2.4 per cent drop in manufacturing activity. Between the other broader indices, electricity production rose by 3.2 per cent, while that for mining was up by 2.9 per cent.
The cumulative growth of the electricity and mining indices for the first nine months of the current fiscal were 4.5 per cent and 2.3 per cent, respectively. Manufacturing's cumulative growth stood at 3.1 per cent.
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 per cent in December. The consumer goods segment accelerated by 2.8 per cent.
However, capital goods segment, which is a key indicator of economic activity plunged by (-)19.7 per cent. The output of consumer non-durables was lower by (-)3.2 per cent.
The basic and intermediate goods' output inched-up by 0.5 per cent and 0.9 per cent, 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 per cent), 'telephone instruments including mobile phone and accessories' (141.1 per cent), 'Di Ammonium Phosphate' (46.8 per cent), 'wood furniture' (36.9 per cent), 'commercial vehicles' (28.7 per cent) and 'gems and jewellery' (27.1 per cent).
Moreover, high negative growth was reported in the 'cable, rubber insulated' (- 85.2 per cent), 'heat exchanger' (- 68.8 per cent), 'cement machinery' (- 60.2 per cent), 'grinding wheels' (- 37.4 per cent), 'boilers' (- 22.7 per cent) and 'sponge iron' (- 22.5 per cent).