IIP growth slowed to 0.4% in December

Data shows capital goods, consumer durables output shrank signalling poor investment, consumption

India’s industrial recovery slowed sharply in December, with output growing just 0.4% year-on-year, and manufacturing activity contracting 0.1%, as per official estimates for the Index of Industrial Production (IIP).

Electricity output grew 2.8%, while mining activity rose 2.6%. The IIP data also shows capital goods output shrank 4.6% in December while consumer durables and consumer non-durables saw output shrink 2.7% and 0.6%, respectively. Consumer durables contracted for the fourth straight month.

Growth in other use-based segments was marginal and couldn’t lift the overall industrial output trend, with primary goods output rising 2.8%, infrastructure and construction goods growing 1.7% and intermediate goods seeing a mere 0.3% uptick.