Double setbacks for economy, Rise in retail inflation, fall in factory output

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Indian economy was hit by twin setbacks on Tuesday after data released by Central Statistics Office revealed that the retail inflation had inched up for the fifth consecutive month and industrial output contracted by 3.2% in December.

The Consumer Price Index ( CPI) rose to 5.61% in December mainly on costlier vegetables and cereals.

This is the worst performance since October 2011 when industrial production had contracted by 4.7 per cent.

The industrial production growth in October was slightly revised upwards to 9.9 per cent from provisional estimates of 9.8 per cent released last month.

A report published by PTI said that the manufacturing sector, which constitutes over 75 per cent of the index, contracted by 4.4 per cent as against a growth of 4.7 per cent in the same month last year.

Seventeen out of 22 industry groups in the manufacturing segment showed negative growth during November 2015 compared to the corresponding month of the previous year.

Capital goods output, which is a barometer of investment, contracted by 24.4 per cent in November 2015 compared to a growth of 7 per cent in same month of previous year.

The electricity sector, which constitutes about 10 per cent of the index, also showed dismal performance as it grew by meagre 0.7 per cent in November 2015 compared to 10 per cent growth in same month a year ago.

The mining sector output grew by 2.3 per cent in November 2015 against 4 per cent growth in the same month a year ago.

Overall consumer goods production grew at 1.3 per cent in November 2015 against contraction of 1.6 per cent in same month of 2014. .

1 COMMENT

  1. ALAS INDIA !!!!

    IS THIS WHAT WE HAD VOTED FOR ?????

    IS THIS HOW AN ALLEGED IMPOSTOR OF DDCA SCAM, WHO NEVER COULD WIN ANY ELECTION, NAMED ARUN JAITLEY DOMINATING THE SHOW UNDER THIS PREPOSTEROUS MODI GOVERNMENT ?????

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