IIP growth slips to 4.5% in Sep; retail inflation falls to 3.31% in Oct

IIP growth slips to 4.5% in Sep; retail inflation falls to 3.31% in Oct

New Delhi, Nov 13: Growth in industrial output slowed to 4.5 per cent in September against 4.7 per cent in the same month last year as the festival season started late this year compared to 2017.
Growth faltered as the output of capital goods and mining expanded at a slower pace in September than in the previous month.
The index of industrial production (IIP) growth numbers were revised for August from 4.3 per cent to 4.7 per cent.
If compared to the provisional numbers, growth would be seen as moderately rising. As such, it is a bit of a statistical illusion, depending on which number one takes for August because some people may argue provisional numbers should be compared to provisional numbers. However, a low base effect of September 2017 compared to August 2017 should have magnified the growth numbers for September this year. IIP growth fell to 4.1 per cent in September 2017 against 4.5 per cent in August. This is the last crucial official data before the gross domestic product numbers for the second quarter of the current financial year come out by the end of November.
“The mild dip in industrial growth in September was driven by the impact of floods in some parts of the country, and the disruption related to the later start to the festive season, and does not pose a substantial concern,” Aditi Nayar, chief economist at ICRA said. Among three major segments, it was primarily electricity generation, which grew 8.2 per cent in September against 7.6 per cent in the previous month. However, electricity constitutes just around 8 per cent of the IIP. The growth rate in manufacturing, the dominating segment, accounting for 78 per cent of the IIP, declined to 4.6 per cent in September from 5.1 per cent in the previous month.