Factory output growth disappoints, hits a 3-month low of 3.7% in June

https://www.thehindubusinessline.com/economy/factory-output-growth-disappoints-hits-a-3-month-low-of-37-in-june/article67184425.ece

excerpts

Pulled down by a tepid manufacturing show, the country’s factory output measured by the Index of Industrial Production (IIP) grew at a weaker-than-expected three-month low rate of 3.7 per cent in June 2023, official data released on Friday showed.

This latest growth print was much lower than the upwardly revised 5.3 percent growth recorded in May 2023 and belied the hopes raised by the strong June 2023 core sector growth performance of 8.2 percent, which was a five-month high. The eight Core sector industries make up 40 percent of IIP.

Weak Manufacturing 

The overall IIP growth was brought down by a weak show in manufacturing, which recorded a growth of 3.1 per cent for the month under review.

This was substantially lower than the 12.9 per cent growth recorded by this segment in June last year.

As many as 14 of the 23 sectors in manufacturing registered negative growth.

The significant non-performers were food, textile-related, and electronics, amongst others. Machinery and metals were the drivers here.