Friday, March 24, 2023

January factory output growth strengthens at 5.2% – Usky News

New Delhi: Industrial production growth was robust in January on the back of strong performance in electricity, mining, capital goods, infrastructure and strength in the manufacturing sector.
data released by national statistics office ,NSO) showed on Friday that the Index of Industrial Production (IIP) grew 5.2% year-on-year in January, compared to a revised 4.7% in December and higher than the 2% recorded in January 2022. During April to January, the IIP grew at 5.4% as compared to 13.7% in the same period a year ago.
The manufacturing sector, which accounts for a large portion of the index, grew an annualized 3.7%, compared to a 1.9% expansion in January 2022. The electricity sector grew by 12.7% compared to a 0.9% expansion in January. A year ago in this month. The mining sector expanded by 8.8% during the month as compared to a 3% expansion in January 2022.
The capital goods sector, a key gauge of industrial activity, grew 11% in January compared to 1.8% in January 2022, while the infrastructure and construction goods sector grew 8.1% compared to 5.9% growth. Duration.
“Surprisingly, manufacturing output grew by 3.7%, up from 2.7% in December. We think this was driven partly by a lower base, but also possibly by better demand than anticipated in light of news of China’s reopening,” Barclays said in a research note.
“The data suggests that manufacturing is still strong in India compared to elsewhere in Asia, as also shown in PMI Figures. The details went further, showing a pick-up in manufacturing of computers and electronics even amid a tech downcycle,” the note added.
The expected global slowdown is expected to have an impact on the country’s manufacturing sector but strong domestic demand is expected to persist and provide support to overall growth.
The IIP data showed the consumer durables sector contracting 7.5% in January compared to a decline of 4.4% in January 2022. Consumer non-durables grew a robust 6.2% during the month, compared to an increase of 3.1% in January 2022.
“Despite a subdued base related to the third wave of Covid, some of the available high-frequency indicators registered a weak performance in February 2023 relative to January, such as Coal India’s output, rail freight traffic, cargo traffic of ports, electricity generation and auto output,” said ICRA Aditi Nair,


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