Factory output for Feb 2014 falls to 9-month low

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 Factory output for Feb 2014 falls to 9-month low
The Index of Industrial Production (IIP) or factory output has contracted by 1.9 per cent for the month of Feb 2014, in comparison to Feb 2013.

The cumulative growth for the period April-February 2013-14 over the corresponding period of the previous year stands at -0.1 per cent, as lower output continues to worry policy makers.

The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of February 2014 stod at 126.3, 183.7 and 156.7 respectively, with the corresponding growth rates of 1.4 per cent, (-) 3.7 per cent and 11.5 per cent as compared to February 2013.

The cumulative growth in the three sectors during April-February 2013-14 over the corresponding period of 2012-13 has been (-) 1.1 per cent, (-) 0.7 per cent and 6.2 per cent respectively.

In terms of industries, thirteen (13) out of the twenty two (22) industry groups in the manufacturing sector have shown negative growth during the month of February 2014 as compared to the corresponding month of the previous year. The industry group ‘Radio, TV and communication equipment & apparatus' has shown the highest negative growth of (-) 34.1 per cent, followed by (-) 24.6 per cent in ‘Electrical machinery & apparatus n.e.c.' and (-) 21.3 per cent in ‘Wearing apparel; dressing and dyeing of fur'. On the other hand, the industry group ‘Furniture; manufacturing n.e.c.' has shown the positive growth of 9.3 per cent, followed by 9.1 per cent in ‘Textiles' and 6.1 per cent in ‘Coke, refined petroleum products & nuclear fuel'.

The fall in industrial output is unlikely to put any pressure on the Reserve Bank of India to cut interest rates, as the central bank has made it clear that fighting inflation would be its top priority.


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