IIP surges to five-month high of 7%

IIP surges to five-month high of 7%

News

1. The Index of Industrial Production registered a growth rate of 7% in June, rising from 3.93% in May.

Important Facts

2. Main driver of growth

• Manufacturing sector grew 6.9% in June from 3.66% in May
• The primary goods grew 9.28% in June, up from 5.74% in May.
• Capital goods grew 9.62% in June up from 6.92% in May
• The infrastructure sector grew 8.53% in June, up from 7.42% in May
• Consumer goods grew 5.92% in June from 1.57% in May
• consumer durables grew 13.1% in June, up from 6.39% in May.
• However, Consumer non-durablesgrew only 0.47% in June, although this reversed the contraction of 2.06% witnessed in May

3. The strong recovery in manufacturing and consumer durables will boost infrastructure and construction sector

4. This could be the reflection of the positive investment trend, in sectors such as roads, railways and affordable housing despite of low base of last year