Published: Fri, April 13, 2018
Business | By Kate Woods

Industrial output slows to 7.1%, retail inflation eases for third straight month

Industrial output slows to 7.1%, retail inflation eases for third straight month

The IIP data showed though the growth came down to 7.1% in February compared with 7.5% in January, manufacturing output witnessed a robust growth. The factory output has sustained a positive momentum since October 2017 when it was 2.2 per cent. Experts suggest the growth trend till sustain in future.

Factory output measured by the index of industrial production (IIP) is the closest approximation for measuring economic activity in the country's business landscape.

United Kingdom manufacturing output unexpectedly fell 0.2% in February - the first decline in nearly a year and down from revised growth of zero for January.

Index of Industrial Production (IIP) declined in February to 7.13 per cent from a rise of 7.39 per cent in January 2018 and a mere growth of 1.2 per cent in the corresponding period of past year.

The manufacturing sector, which constitutes over 77 percent of the index, grew at 8.7 percent in February as compared to the nearly flat growth of 0.7 percent in the same month a year ago. The output of intermediate goods which has the second highest weightage rose by 3.3 per cent.

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Consumer durables too grew at 7.9 percent as against a contraction of 4.6 percent in February 2017.

Manufacturing output, which was a bright spot past year thanks to the strong global economy, fell 0.2 percent month-on-month in February after a downward revision showed it stagnated in January, the Office for National Statistics said.

Electricity production grew 4.5 percent in February, as compared 7.6 percent growth in January and 1.2 percent a year ago.

Feb IIP growth at 7.13%, March CPI hits five-month low of 4.28%.

The ONS also released figures for construction output in February which showed a 1.6 percent drop after a 3.1 percent plunge in January - confounding the consensus expectation for a 0.7 percent increase on the month.

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The inflation based on the Consumer Price Index (CPI), a key data factored in by the Reserve Bank of India (RBI) to arrive at interest rate, was 4.44 percent in February.

As per data released by the Central Statistics Office (CSO), inflation in the vegetables segment cooled to 11.7 percent in March from 17.57 percent in the previous month.

However, inflation in fruits basket was higher.

He said the figures looked consistent with first-quarter economic growth of around 0.2 per cent quarter-on-quarter, weaker than the Bank of England's forecast of 0.3 per cent and the 0.4 per cent recorded in the last three months of 2017. Overall, inflation in the food basket was 2.81%, lower than 3.26% in February.

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