Oct Industrial Output Surges To 9.8%; Raises Hopes Of Economic Recovery

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The Index For Industrial Production (IIP) grew to a stellar 9.8 per cent in Oct, raising the hopes of a strong recovery.

The IIP for October stood at 9.8 per cent, as against 3.6 per cent in Sept. Interestingly, the figure in Sept was the lowest one had seen in four months. However, one must remember that the IIP number always tends to be volatile and the month of Oct may have got a boost from the pre-festive season demand, particularly things like consumer durables.

Oct Industrial Output Surges To 9.8%; Raises Hopes Of Economic Recovery
The favourable base also helped the IIP numbers. The manufacturing sector, which is always eagerly viewed by analysts and investors alike, grew 10.6 per cent year-on-year in October. Electricity generation expanded 9 per cent and the mining sector was up 4.7 percent.

"The general index for October 2015 stands at 181.3, which is 9.8 per cent higher compared with the level in October 2014. The cumulative growth for April-October 2015-16 over the corresponding period of the previous year stands at 4.8 per cent," said a release from the Central Statistics Office (CSO).

Consumer Goods Output was placed at 18.4 per cent vs 0.6 per cent (MoM) - Intermediate Goods Output on the other hand was at 6.7 per cent vs 2.1 per cent (MoM) - Capital Goods Output At 16.1 per cent Vs 10.5 per cent (MoM).

Overall, most of the figures that came in were healthy, giving hopes to revival in the economy. All eyes would now be on the inflation data due later next week.

GoodReturns.in

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