New Delhi: The growth of industrial output slowed to 3.2% in October due to a sharp moderation in manufacturing activities, increasing fears that the economic revival of steam loss as it was also seen in several other indicators.
While the increase in the industrial production index (IIP) hovered around September 2021 level 3.3%, it has slowed from 4.5% reading on October 2020.
In addition to manufacturing, which grew 2%, electricity also witnessed 3.1% expansion with mining The only sector that posts strong growth.
The numbers threw several other trends that were worried as the capital goods segment witnessed the contraction of 1.1% in October, while consumer resilience output fell more than 6%, the second consecutive month declined, mostly due to lack of chips that affected the delivery of the car.
Consumers who are not durable are only about managed to remain black with an increase in 0.5% output.
“Even when the ongoing supply challenges in the automatic sector survived, YoY’s performance of several other high frequency indicators deteriorated in November 2021, including electrical demand, GST e-way bills, port cargo traffic, etc., showed that economic activity was lost after the season The celebration ended, with full of hidden requests, “Aditi Narggu said, the chief economist at the ICRA assessment agency.
The numbers indicate that the increase in the festival season is negated by some of the terms of the supply side and the phenomenon of low growth in this sector will not be seen immediately, especially with the government recognizing that the lack of chips will survive.
“Industrial output is likely to follow the same trend as observed in a periodic workforce survey and weak private consumption expenditures described in the second quarter GDP figure 2021-22.
Omicron can be a disturbance in the coming months.
Expect a series of IIP numbers The rest of the FY22.
Consumption trends and weak investment implies that the severe removal to take the economy of slow growth must be carried out by the government, “said Devendra Kumar Pant, Head of Economist, Indian Ranking & Research.
The government looks encouraged to increase the capex to ensure that there is enough demand for cement and steel input.