Factory output as measured by movement in the IIP had slipped to an eight-month low of (-)2.49 (revised) in July on account of declining output in manufacturing and capital goods sectors. On a cumulative basis, the factory output in April-August contracted by 0.3 per cent, compared with the growth of 4.1 per cent shown in the year-ago period. Output of consumer durables was up 2.3 per cent, but growth in non-durables segment was almost flat. Seven out of 22 industry groups in the manufacturing sector have shown negative growth during August year-on-year. Some important items showing high negative growth during the current month were cable, rubber insulated, sugar machinery, woollen carpets, gems and jewellery, and rice.

Source: The Telegraph October 10, 2016 13:41 UTC