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The factory output growth measured in terms of the Index of Industrial Production (IIP) decelerated to 5.8 per cent in September 2023 from a 14-month high of 10.3 per cent in August 2023, in line with slowdown in manufacturing activity. Industrial production had grown by 3.3 per cent in September 2022. Though on an annual basis, the output of manufacturing and mining sectors showed an improvement. During April-September 2023-24, the IIP growth works out to be 6 per cent, down from 7.1 per cent in the corresponding period a year ago. The growth rates over the corresponding period of the previous year are to be interpreted, considering the unusual circumstances on account of the COVID-19 pandemic since March 2020.

The data released by the National Statistical Office (NSO) showed the manufacturing sector’s output grew 4.5 per cent in September 2023 against  2 per cent growth a year ago. Power generation rose 9.9 per cent in September 2023 compared to 11.6 per cent growth in the year-ago period. Mining output rose by 11.5 per cent in the month under review against a 5.2 per cent contraction a year ago. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of September 2023 stood at 111.5, 140.6 and 205.9 respectively.

As per use-based classification, Consumer durables output during the month grew by 1 per cent against a contraction of 5.5 per cent. Consumer non-durable goods output increased by 2.7 per cent compared to a contraction of 5.7 per cent a year earlier. The intermediate goods output in September rose 5.8 per cent from 1.7 per cent growth during the corresponding month last year. Besides, the output of primary goods logged 8 per cent growth in the month compared to 9.5 per cent in the year-ago period. The capital goods segment grew 7.4 per cent in September this year compared to 11.4 per cent growth in the year-ago month. Infrastructure/construction goods posted a growth of 7.5 per cent against an 8.2 per cent expansion a year ago.