IIP growth rebounds, retail inflation surges
Electricity sector growth, however, slows to 4.75% in July from 8.19% in June; food inflation at a 14-month high
Industrial activity rebounded in July to 4.3% on a broad-based recovery across key sectors such as mining, manufacturing and construction, official data released on Thursday showed.
In a separate release, data showed retail inflation rose in August to hit a 10-month high of 3.21% on quickening food price rises.
Growth in the Index of Industrial Production (IIP) accelerated in July after a slump in June when it touched 1.17%. Within the index, the mining sector accelerated to 4.92% in July compared with 1.53% in June. The manufacturing sector, similarly, saw growth quicken to 4.15% from 0.23% over the same period.
“The numbers provide some positive news for the output scenario because most of the IIP indicators show an uplift,” said D.K. Srivastava, chief policy adviser, EY India. “The only issue is to see if this will be sustained. This has come as a positive surprise because the general trend indicates a slowdown momentum.”
Construction and infrastructure sector saw a turnaround in July, growing 2.13% after contracting 1.9% in the previous month. On the consumer side, the consumer durables sector reined in its contraction, contracting 2.7% in July compared with a steep contraction of 10.2% in the previous month. Consumer non-durables saw growth accelerating to 8.29% from 7.08%. The electricity sector, however, saw growth slowing in July to 4.75% from 8.19% in June.
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