In a big disappointment, the industrial production growth contracted by 0.4 percent in December 2016, after recording a 13 month high growth of 5.7 percent in November. The index of industrial production (IIP) stood at 183.5 mainly on account of weakness in manufacturing. The cumulative growth of industrial production for the period April-December 2016 over the corresponding period of the previous year stood at 0.3 percent.
According to the data released by the Ministry of Statistics and Programme Implementation, Central Statistics Office (CSO) IIP, with base 2004-05 for the month of December 2016, the Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors stood at 144.5, 189.3 and 194.7 respectively, with the corresponding growth rates of 5.2 percent, (-) 2.0 percent and 6.3 percent, as compared to December 2015. The cumulative growth in these three sectors during April-December 2016 over the corresponding period of 2015 has been 0.9 percent, (-) 0.5 percent and 5.1 percent respectively.
Growth in output of consumer durables decelerated to 10.3 percent in December as compared to 16.6 percent a year ago. The consumer non-durable goods output declined by 5.0 percent in December against 2.7 percent contraction a year ago. Overall, consumer goods production recorded a contraction of 6.8 percent in the month against growth of 3.2 percent in last year. The capital goods output registered a decline of 3.0 percent in the month. Though, the Basic Goods registered a growth of 5.3 percent in the December 2016 over December 2015.
In terms of industries, 17 out of the 22 industry groups in the manufacturing sector showed negative growth during the month of December 2016 as compared to the corresponding month of the previous year. The industry group ‘Office, accounting and computing machinery’ showed the highest negative growth of (-) 23.9 percent followed by (-) 22.9 percent in ‘Other transport equipment’ and (-) 14.4 percent in ‘Luggage, handbags, saddlery, harness & footwear; tanning and dressing of leather products’. On the other hand, the industry group ‘Basic metals’ showed the highest positive growth of 11.1 percent followed by 9.8 percent in ‘Radio, TV and communication equipment & apparatus’ and 3.0 percent in ‘Coke, refined petroleum products and nuclear fuel’.