Inflation continued to hurt consumption demand for households, reflected in a sharp contraction of 4.5% and 7.1%, respectively, in the production of consumer durables as well as in non-durables.
Inflation continued to hurt consumption demand for households, reflected in a sharp contraction of 4.5% and 7.1%, respectively, in the production of consumer durables as well as in non-durables.
India’s industrial output grew 3.1 percent in September contractions in the last monthPower generation was helped by double-digit growth, while manufacturing output growth remained weak at 1.8%.
According to the quick estimates of the Index of Industrial Production (IIP) released by the statistics ministry, mining output grew by 4.8% in September after a fall of about 4% in August.
On a sequential basis, September production was 1.5% over August 2022 but 0.67% lower than July 2022 level. Mining, manufacturing and power generation were below July 2022 levels.
Inflation continues to wreak havoc on consumers
Inflation continued to hurt consumption demand from households, which shows production of consumer durables as well as non-durables shrinking sharply to 4.5% and 7.1%, respectively.
This is the third month in a row in consumer non-durables production, although there was a marginal 2% increase in production compared to August.
Consumer durables production fell for the second month in a row, but production levels were 5% higher than in August and the highest since June.
All other categories of goods classified on the basis of their usage posted year-on-year growth in September led by capital goods (up 10.3%) and primary goods (up 9.3%). Infrastructure and construction goods grew by 7.4% and intermediate goods production was up 2% compared to September 2021.
‘Welcome but weak’
ICRA Chief Economist Aditi Nayar said the rebound of September industrial output growth from August’s 0.7% fall is ‘albeit welcome’, and comes amid declining demand for consumer goods and weak exports.
“We expect the overall IIP growth to decelerate to sub-2% in October 2022, due to higher number of holidays in October 2021 relative to October 2021, with the onset of the festive season and likely dampening external demand. The performance of the manufacturing sector in the month,” she said.