Industrial output contracts 1.1% in August; manufacturing shrinks

Image for representation

This was the first contraction in the sector in the past six months.

This is the first instance of a contraction in the index of industrial production in over two years.

The manufacturing sector, which contributes over 77 per cent to the IIP, registered a decline of 1.2 per cent in output during August 2019 as against a growth of 5.2 per cent in the same month of a year ago.

"The Indian economy is presently facing a structural growth slowdown originating from declining household savings rate, and low food inflation and agricultural growth".

The manufacturing sector, which contributes over 77 percent to the IIP, showed a decline of 1.2 percent in output during August 2019 as against a growth of 5.2 percent in the same month of past year, PTI reported. The previous low in IIP was -1.7 per cent, in November 2012. A slide in the output of infrastructure goods and consumer durables offers pointers to the underlying weak demand conditions.

Elizabeth Warren wins praise for zinger response to same-sex marriage question
She said she couldn't be sure what she thought as a kid, and acknowledged that different faiths see things differently. Jesus loves all the children of the world, '" Warren addressed onstage after she was questioned about her own faith.

As per the data, electricity generation declined by 0.9 per cent as against an expansion of 7.6 per cent in the year-ago month. The cumulative growth for the period April-August 2019 over the corresponding period of the previous year stands at 2.4 per cent, down from 5.3 per cent in the corresponding period of the last fiscal. Fifteen out of the 23 industry groups in the manufacturing sector showed a decline in output in August as compared to the same month previous year, the government said.

As per the data, the output rate of the manufacturing sector fell (-) 1.2 per cent in August from a year-on-year (YoY) rise of 5.2 per cent. They also said the dismal factory data may prompt the RBI to go for another interest rate cut when it reviews monetary policy in December. Moody's Investors Service on Thursday projected a low 5.8% growth for India in FY'20 - the lowest growth estimate issued so far by any agency for the current fiscal. Consumer durables also saw a massive 9.1% drop in production, while production of Consumer non-durables grew by 4.1%.

To combat the slowdown, Finance Minister Nirmala Sitharaman announced a cut in corporate tax rates in September, bringing it down to 22 percent from 30 percent for existing companies, and to 15 percent from 25 percent for new manufacturing companies. The highest contraction was seen in motor vehicles, trailers and semi-trailers (-23.1%), transport equipment (-13.6%), paper (-12.6%), textiles (-7.6%) among others. Going forward, the IIP is likely to show erratic low growth trend.

Economists said they expect the sector to witness a rebound on the back of revival in the rural economy and an upswing in demand due to the measures unveiled by the government.

Related News:

  • Fox News anchor Shepard Smith leaving the network

    Fox News anchor Shepard Smith leaving the network

    Later that night, Carlson asked his own analyst, Joseph diGenova, to comment and he called Napolitano a fool. Smith, 55, made the announcement live on the air and Fox sent out a press release .
    Discovery of 20 new moons gives Saturn a solar system record

    Discovery of 20 new moons gives Saturn a solar system record

    Effectively this time, Sheppard is asking for the moons to be named "after giants from Norse, Gallic or Inuit mythology ". The outer moons of Saturn appear to be grouped into three different clusters, according to how they orbit the planet.
    Related lung injury may have 'more than one root cause,' CDC says

    Related lung injury may have 'more than one root cause,' CDC says

    The health minister in Nova Scotia says his government is considering changing regulations to ban flavoured vaping products. All patients have reported a history of using e-cigarette, or vaping, products, according to the CDC .
  • Brexit: EU, UK get go-ahead to intensify talks

    Brexit: EU, UK get go-ahead to intensify talks

    Under no circumstances will we see anything that damages the whole of the United Kingdom to take full advantages of Brexit. Since the 2016 British referendum vote for Brexit, negotiations have bounced back and forth between London and Brussels.
    Saudi Revenge? Iran Reports Oil Tanker Explosion

    Saudi Revenge? Iran Reports Oil Tanker Explosion

    There was no immediate acknowledgement from the kingdom of this amid heightened tensions across the Middle East. The US Navy's Fifth Fleet, which operates in the region, said it was aware of media reports about the tanker.
    Antonio Brown thinks the Patriots should bring him back

    Antonio Brown thinks the Patriots should bring him back

    But that's not stopping the still-unemployed Pro Bowl receiver from calling upon his former employers to give him another chance. Brown was released the Friday before Week 3 after he allegedly sent "menacing" text messages to an accuser.
  • Tens of thousands of Syrian fighters mobilised by Turkey

    Tens of thousands of Syrian fighters mobilised by Turkey

    But Trump also threatened to "totally destroy and obliterate" Turkey's economy if the Turkish push into Syria went too far. Italy condemned the offensive as "unacceptable", saying military action in the past always led to terrorism.
    Toyota Previews Sleek New Second Generation Mirai Ahead of Tokyo Motor Show

    Toyota Previews Sleek New Second Generation Mirai Ahead of Tokyo Motor Show

    It's fair to say the first-generation Mirai was fiendishly clever; it's also fair to say that its design was an acquired taste. The company plans to increase sales of hybrid cars and SUVs in the U.S.to 25% of deliveries by 2025, up from about 9% today.
    Djokovic overcomes Isner's aces in Shanghai

    Djokovic overcomes Isner's aces in Shanghai

    World number one Novak Djokovic was knocked out of the Shanghai Masters in the quarter-finals by sixth seed Stefanos Tsitsipas . Zverev won the quarterfinal matchup, 6-3, 6-7 (7), 6-3, and this short outburst took place in the deciding set of the match.
  • Review faults Boeing, FAA for 737 MAX troubles

    Review faults Boeing, FAA for 737 MAX troubles

    The agency had faced criticism over its approval of Boeing's 737 Max, which has been grounded since March following the crashes. Those Boeing employees should be able to directly talk to FAA technical staff "without fear of reprisal", the review added.
    Two Huge Matches Announced For WWE Crown Jewel

    Two Huge Matches Announced For WWE Crown Jewel

    When he won his first UFC championship against Lesnar in 2010, he told ESPN that he had already been in talks with WWE. With his signing, Velasquez joins the likes of Lesnar and Ronda Rousey as former UFC champions on the WWE roster.
    Ethiopian Prime Minister Wins 2019 Nobel Peace Prize

    Ethiopian Prime Minister Wins 2019 Nobel Peace Prize

    In an interview with VOA's Horn of Africa service in May 2019, Abiy acknowledged that he planned to be an agent of change. On a more personal note, Abiy and his wife, Zinash, have four children, three girls and one boy who is recently adopted.


Most liked

US Sanctions Law Nails The Guptas
Both Zuma and Thales have denied any wrongdoing, and the former president could still appeal the ruling, experts have suggested. After his election, his opponents fought a lengthy legal battle to have the charges reinstated, finally succeeding in 2016.

Todd Gurley is doubtful, Aqib Talib out for Rams vs. 49ers
In the midst of a two-game losing streak, the Rams might be without a pivotal piece in a crucial divisional game this weekend. If Gurley is unable to play, expect Malcolm Brown and rookie Darrell Henderson to carry the load at running back for the Rams.

Man arrested after five stabbed at UK shopping mall
A man has been arrested on suspicion of a terrorism offence after multiple people were stabbed in Manchester's Arndale Centre. The man, in his 40s, was arrested on suspicion of terrorism although police said his motivation was not yet clear.

Reckless driving caused Kevin Hart auto crash, police say
In the statement, Hart addressed the two, saying: "I have nothing but love for Jared and wish him and Rebecca a speedy recovery ". Earlier this week, a source told ET that Hart is back home and doing physical therapy with a private therapist.

Judge blocks green card denials for poorer immigrants
U.S. immigration law has long required officials to exclude from permanent residency a person likely to become a "public charge". Immigrant advocates said this would disproportionately affect people from Latin American, African and Asian countries.

How Mason Rudolph's cart treatment unfolded: Mike Tomlin
Rudolph left last weekend's overtime loss to Baltimore in the third quarter after Thomas hit Rudolph in the chin with his helmet. Rudolph appeared to be knocked out on impact, but later walked off the field with heavy assistance from two of his linemen.

California State Senator Blasts PG&E Over Power Outages
The 210 Freeway has been shut down in both directions between the 5 and 118 freeways, according to the Los Angeles Times. In the midst of confusion and frustration over the outages, there had been some positive news for PG&E customers.

'There was no blackmail': Volodymyr Zelensky weighs in on impeachment discussion
Asked what Ukraine did to persuade the U.S. to release the aid, Zelenskiy said: 'We have many diplomatic contacts. Volodymyr Zelensky said on Thursday that there was " no blackmail " involved in the call he had with Trump.

Google Maps is getting more detailed spoken walking directions
It will even ask you to cross with added caution for larger intersections and notify you when you are not on the right route. If users accidentally leave their routes, Maps will give a spoken notification that it's re-routing them.

Sharks sign Marleau to one-year deal
Off to a rocky start, the Sharks are hoping the three-time All-Star will be able to suit up as early as this weekend. San Jose only has scored one goal per game through its first few contests and the power play is a dismal 0-for-14.

Advance polls now open ahead of October 21 federal election
If you have not received your voter card, you can check with Elections Canada to see if you are registered to vote. Advance polling station locations are listed on voter information cards , which were mailed out a few weeks ago.

Padres pitcher accused of breaking in through doggie door
According to the records, they both bonded out that afternoon, Nix paying a $100 bond and Cosgrove paying a $50 bond to the court. He told police he saw a flashlight shining through the door and a man, later identified as Nix, trying to crawl through.

The wait is over! Harry Styles returns with new single and video
In the video, a shirtless Harry dances with a group of men and women, and we just weren't prepared, tbh. The Gypsy songstress told The Face magazine "It's not like anything One Direction ever did.

Pentagon Urges Turkey to Halt Invasion Into Syria
Several shells landed close to where many media organizations have set up, including the BBC on the outskirts of Akcakale . President Erdogan wants a buffer zone to which he can send back some of the 3.6 million Syrian refugees his country hosts.

Jane Fonda Arrested at Climate Change Protest
Today, the United States Capitol Police arrested 16 individuals for unlawfully demonstrating on the East Front of the U.S. Jane Fonda is a legend. "It so traumatized her that she stopped speaking and eating", Fonda explained.