Manufacturing sector, which constitutes over 77 per cent of the index, showed a decline of 0.4 per cent in June as compared to a growth of 7.5 per cent in the same month last year.
Industrial output entered the negative territory in June contracting by 0.1 per cent mainly due to decline in manufacturing and capital goods sectors.
Besides, segments like mining, power generation, infrastructure/construction goods and consumer durables recorded poor performance.
Factory output, measured in terms of Index of Industrial Production, grew 8 per cent in June 2016, according to the data released by the Central Statistics Office on Friday.
On a quarterly basis, factory output growth during April-June slowed down to 2 per cent from 7.1 per cent in the corresponding period last year.
This is the first time in the current fiscal, the industrial output has shown a decline.
The IIP grew by 3.4 per cent in April and 2.8 per cent May as per the revised estimates released on Friday.
Manufacturing sector, which constitutes over 77 per cent of the index, showed a decline of 0.4 per cent in June as compared to a growth of 7.5 per cent in the same month last year.
The output of mining and electricity sectors during the month decelerated to 0.4 per cent and 2.1 per cent from 10.2 per cent and 9.8 per cent respectively in June last year.
Capital goods output, which is the barometer of investment, declined by 6.8 per cent from a growth of 14.8 per cent a year ago.
Similarly, the output of primary goods and intermediate goods during the month declined by 0.2 per cent and 0.6 per cent as against growth of 8.2 per cent and 6 per cent respectively during June last year.
The Consumer durables and Consumer non-durables have recorded growth of (-) 2.1 per cent and 4.9 per cent respectively.
In terms of industries, 15 out of 23 industry groups in the manufacturing sector have shown negative growth during the month of June 2017 as compared to the corresponding month of the previous year.
Photograph: Shailesh Andrade/Reuters
