India's factory output grows 1.2% in July

Consumer price index based inflation continued to rise for the second consecutive month by 3.36% from 2.36% a month ago as food inflation turned positive after three months of contraction

Shrugging off the contraction experienced in the previous month, Indian factory output in July rose marginally by 1.2 per cent as compared to the same month of past year, official data showed on Tuesday.

The general Index for the month of July 2017 stands at 118.2, which is 1.2% as compared to the level in the month of July 2016.

The August inflation number is the highest since March 2017, when it was recorded at 3.89 per cent.

As per inflation data, food inflation in August moved up to 1.52 per cent.

The factory output growth, measured on the Index of Industrial Production (IIP), for April-July period accelerated to 1.7 percent from 6.5 percent in the same period last fiscal, as per the data released by the Central Statistics Office.

Growth in IIP, but only 1.2 per cent.

New Delhi:India's industrial production recovered to grow only mildly as growth in manufacturing output remained flat with introduction of goods and services tax (GST) which continued to disrupt production networks while retail inflation quickened in August ruling out any rate cut by the central bank in the near future.

As per Use-based classification, growth rates in July 2017 over July 2016 are 2.3% in Primary goods, negative 1% in Capital goods, (-) 1.8% in Intermediate goods and 3.7% in Infrastructure/ Construction Goods.

However, industrial production in July was better than June, when it declined by 0.2 per cent.

The factory output had expanded by 4.5 per cent during July of 2016.

"In terms of industries, eight out of the 23 industry groups in the manufacturing sector have shown positive growth during the month of July 2017 as compared to the corresponding month of the previous year", the CSO said. Mining and electricity sectors however grew at robust 4.8% and 6.5% respectively in July.



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