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Manufacturing slump pulls down IIP to 11.1% in May
 
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July 12, 2007 14:26 IST

Slowdown in the manufacturing sector pulled down the Index of Industrial Production marginally to 11.1 per cent in May from 11.7 per cent in the corresponding month last year.

Although the mining and electricity sectors did better in May, manufacturing fared poorly in the month with the growth rate decelerating to 11.9 per cent from 13.3 per cent during the corresponding month in 2006-07, reveals the quick estimates of IIP issued by the government on Thursday.

During the month, mining sector recorded a growth of 3.7 per cent as against 2.9 per cent in May 2006, while the power sector performed much better by nearly doubling the growth rate to 9.4 per cent from 5 per cent.

The cumulative growth rate during April-May worked out to be 11.7 per cent as against 10.8 per cent during the corresponding period last year.

During April-May period, the mining, manufacturing and electricity sectors recorded growth rates of 3 per cent (3.2 per cent in April-May 2006), 12.7 per cent (12.2 per cent) and 9 per cent (5.5 per cent) respectively.

As per the use-based classification of the industry, the growth rate of consumer durables dipped significantly to 2.6 per cent in May as against 17.5 per cent in the corresponding month last year.

The growth rates of intermediate goods and consumer goods too decelerated to 9.1 per cent and 9.8 per cent from 12.5 per cent and 10.5 per cent respectively in May 2006.


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