{"id":30666,"date":"2018-10-26T17:24:24","date_gmt":"2018-10-26T11:54:24","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=30666"},"modified":"2018-10-26T17:24:24","modified_gmt":"2018-10-26T11:54:24","slug":"iip-quickens-to-7-5-inflation-softens","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/iip-quickens-to-7-5-inflation-softens\/","title":{"rendered":"IIP quickens to 7.5%, inflation softens"},"content":{"rendered":"<p><a href=\"http:\/\/www.thehindu.com\/todays-paper\/tp-business\/iip-quickens-to-75-inflation-softens\/article23166347.ece\"><strong>IIP quickens to 7.5%, inflation softens<\/strong><\/a><\/p>\n<p><strong>Context <\/strong><\/p>\n<p>Industrial activity accelerated in January to 7.5% on the back of strong manufacturing growth and a rebound in the consumer durables sector, according to official data released on Monday<\/p>\n<p><strong>Other observations<\/strong><\/p>\n<p><strong>Inflation <\/strong><\/p>\n<ul>\n<li><strong>Retail inflation<\/strong>, as measured by the Consumer Price Index (CPI), <strong>eased <\/strong>to 4.4% in February, following two months of figures above 5%<\/li>\n<li><strong>Inflation<\/strong> as measured by the CPI <strong>slowed <\/strong>to 4.44% in February from 5.07% in January, mostly due to <strong>easing food and fuel prices<\/strong><\/li>\n<li><strong>Inflation<\/strong> in the food and beverages segment <strong>slowed <\/strong>to 3.38% in February from 4.58% in the previous month<\/li>\n<li><strong>Inflation<\/strong> in the fuel and light segment <strong>slowed<\/strong> to 6.8% from 7.73% over the same period<\/li>\n<\/ul>\n<p><strong>IIP<\/strong><\/p>\n<ul>\n<li><strong>Growth<\/strong> in the Index of Industrial Production <strong>quickened<\/strong> to 7.5% in January from 7.07% in December\n<ul>\n<li>The manufacturing sector saw growth quickening marginally to 8.7% in January from 8.4% in the previous month<\/li>\n<\/ul>\n<\/li>\n<li><strong>Electricity<\/strong> also saw <strong>growth accelerating<\/strong> to 7.6% from 4.43% in December<\/li>\n<li><strong>Primary goods <\/strong>saw <strong>growth accelerating <\/strong>to 5.8% in January from 3.73% in December<\/li>\n<li>The <strong>capital goods sector<\/strong> continued to witness <strong>strong growth<\/strong> of 14.6% in January, although this was lower than the 16.44% seen in the previous month<\/li>\n<li><strong>Growth in infrastructure and construction quickened<\/strong> slightly to 6.8% in January from 6.68% in the previous month<\/li>\n<li>The <strong>consumer durables sector<\/strong> saw <strong>growth accelerating<\/strong> sharply to 8% from 0.86% over the same period<\/li>\n<\/ul>\n<p><strong>PMI weakened<\/strong><\/p>\n<ul>\n<li>The only concern is that the <strong>Purchasing Managers\u2019 Index data <\/strong>for February showed a <strong>weakening<\/strong><\/li>\n<\/ul>\n<p><strong>Why the easing in indices?<\/strong><\/p>\n<p>This easing appears to have come largely on the back of a slowdown in the food price inflation. Whether this easing sustains or not depends on multiple factors, including the agricultural production as well as the threat of rising crude oil prices<\/p>\n<p><strong>Impact<\/strong><\/p>\n<p>It is expected that RBI will not deviate from status quo due to inflationary risks<\/p>\n<p><strong>What is IIP?<\/strong><\/p>\n<p>The index of Industrial Production (<strong>IIP<\/strong>) conveys the status of production in the industrial sector of an economy in a given period of time, in comparison with a fixed reference point in the past. \u00a0IIP shows the change in production volume in major industrial subsectors like manufacturing, mining and electricity<\/p>\n<ul>\n<li><strong><u>Computed and published by<\/u><\/strong>: Central Statistical Organisation (CSO)<\/li>\n<li><strong><u>Duration<\/u><\/strong>: Monthly basis<\/li>\n<\/ul>\n<p><strong>What is PMI?<\/strong><\/p>\n<p>It is an indicator of the economic health and investor sentiments about the manufacturing sector (there is services PMI as well)<\/p>\n<ul>\n<li><u>Variables used in PMI\u2019s construction<\/u>: The variables used to construct India\u2019s PMI are: Output, New Orders, Employment, Input Costs, Output Prices, Backlogs of Work, Export Orders, Quantity of Purchases, Suppliers Delivery Times, Stocks of Purchases and Stocks of Finished Goods. Similar variables (but less in number) are used for the construction of services PMI<\/li>\n<li><strong><u>Published by<\/u><\/strong>: For India, the PMI Data is published by Japanese firm <strong>Nikkei<\/strong><\/li>\n<li><strong><u>Compiled and constructed by<\/u><\/strong>: Markit Economics<\/li>\n<\/ul>\n<p><strong>What does PMI actually reflect? <\/strong><\/p>\n<p>It shows the investor sentiment in an economy\u2019s manufacturing sector<\/p>\n<p><strong>IIP vs PMI<\/strong><\/p>\n<p>In terms of composition, we can say the PMI is a sentiment tracking index. On the other hand, the Index of Industrial Production indicates changes in production volume or output<\/p>\n","protected":false},"excerpt":{"rendered":"<p>IIP quickens to 7.5%, inflation softens Context Industrial activity accelerated in January to 7.5% on the back of strong manufacturing growth and a rebound in the consumer durables sector, according to official data released on Monday Other observations Inflation Retail inflation, as measured by the Consumer Price Index (CPI), eased to 4.4% in February, following&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/iip-quickens-to-7-5-inflation-softens\/\">Continue reading <span class=\"screen-reader-text\">IIP quickens to 7.5%, inflation softens<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-30666","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704630373},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/30666","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=30666"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/30666\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=30666"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=30666"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=30666"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}