India's industrial output contracts by 3.8% in Oct

Dwindling manufacturing activity on the back of subdued demand conditions, contracted India's October factory output by (-) 3.8 per cent.

However, the Index of Industrial Production (IIP) data suggested that downward production spiral has somewhat been arrested with October's output declining by (-)3.8 per cent from (-)4.3 per cent in September 2019.

On a year-on-year basis, the growth rate of factory output during the month under review was nowhere near the rise of 8.4 per cent recorded during October 2018.

"The Quick Estimates of Index of Industrial Production (IIP) with base 2011-12 for the month of October 2019 stands at 127.7, which is 3.8 per cent lower as compared to the level in the month of October 2018," the Ministry of Statistics & Programme Implementation said.

"The cumulative growth for the period April-October 2019 over the corresponding period of the previous year stands at 0.5 per cent."

As per the data, the output rate of the manufacturing sector contracted by (-)2.1
per cent in October from a YoY rise of 8.2 per cent.

Similarly, the output of other notable sectors such as mining and electricity declined in the month under review.

According to the data, mining activity declined by (-)8 per cent from a YoY growth of 7.3 per cent and the sub-index of electricity generation was lower by (-)12.2 per cent from a rise of 10.8 per cent.IANS