Industrial Output Growth Remains Flat In August Over Month Ago

India's factory output sustained its recovery in August compared to a month ago, even as growth in manufacturing slowed slightly.

The Index of Industrial Production rose by 11.9% over last year in August 2021 compared to a 11.5% growth in July. On a month-on-month basis, the index remained flat in August. The index stood at 131.1 in August, compared to 131.4 in July.

Twenty-eight economists polled by Bloomberg had forecast August IIP growth at 11.6%.

Sectoral Estimates

• Manufacturing output rose 9.7% on an annual basis, compared to a rise of 10.5% in July. On a sequential basis, output fell marginally by 0.5%.

• Mining output rose by 23.6%, from a rise of 19.5% the previous month. It fell 0.7% sequentially.

• Electricity generation rose by 16% year-on-year, compared to a rise of 11.1% in July. It rose 2% sequentially.

Industrial output, as classified by the end-use of goods, indicated a rise across sectors.

• Primary goods output rose 17% in August on an annual basis, after a rise of 12.4% in July. It fell nearly 1% sequentially.

• Capital goods output rose by 19.9% year-on-year in August, compared to a rise of 29.5% in the previous month. It declined 1.6% month-on-month.

• Intermediate goods output rose by 10.3% annually, after a rise of 14.1% in July. This category, too, saw a sequential decline.

• Infrastructure and construction goods output rose 11.1% in August, compared to a rise of 11.6% in July. Output of these goods rose 1.1% sequentially.

• Consumer durables output rose 8% in August on an annual basis, from 20.2% in July. Output levels were unchanged on a month-on-month basis.

• Consumer non-durables output rose 5.2% in August from last year, compared to a decline of 1.8% in July. Output rose 0.7% sequentially.