14.10.14

Industrial output crawls at 0.4% in August

Industrial output remained weak in August as the manufacturing sector declined and consumer demand remained muted, posing a challenge for the Narendra Modi administration that is battling to revive growth.
Government data showed industrial output rose 0.4%, unchanged from the previous month’s level, largely dragged down by the manufacturing sector that fell an annual 1.4% in August compared to a decline of 0.2% in the year earlier period. The electricity sector rose 12.9% year-on-year compared to a growth of 7.2% in August 2013. Some economists attributed the sluggish number to fluctuation in some sectors such as radio, TV and communications, which fell 49% year-on-year.
They said they were hopeful of a better showing in the months ahead as investments start flowing in and projects get off the ground. But the data triggered calls for urgent steps to revive the sector, crucial for boosting overall economic growth and creating jobs.
The capital goods sector, a barometer of economic activity fell an annual 11.3% in August compared to a decline of 2% year-on-year in August 2013.

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