IIP back in green, up 1.2% in May

Index of Industrial Production (IIP), or factory output, in India in the month of May rose by 1.2%, Ministry of Statistics & Programme Implementation said. 

Central Statistics Office, in a statement, said, "The General Index for the month of May 2016 stands at 181.8, which is 1.2% higher as compared to the level in the month of May 2015. The cumulative growth for the period April-May 2016 over the corresponding period of the previous year stands at (-) 0.1%."

source: tradingeconomics.com

The data showed that IIP for Mining, Manufacturing and Electricity sectors for the month of May 2016 grew by 1.3%, 0.7% and 4.7% as compared to May 2015. The cumulative growth in these three sectors during April-May 2016 over the corresponding period of 2015 has been 1.2%, (-) 1.5% and 9.4%, respectively.

#IIP series not representative of what is happening on the ground ~ Shivom Chakravarti, Senior Economist, @HDFC_Bank @ZeeBusiness

— HDFCBankNews (@HDFCBankNews) July 12, 2016

It said, "In terms of industries, fourteen out of the twenty two industry groups in the manufacturing sector h ave shown positive growth during the month of May 2016 as compared to the corresponding month of the previous year."

Some important items that have registered high positive growth include ‘Woollen Carpets’ (67.0%), ‘Di Ammonium Phosphate (DAP)’ (59.3%), ‘Aviation Turbine Fuel’ (48.2%), ‘Air Conditioner (Room)’ (38.6%), ‘Scooters and Mopeds’ (32.1%) and ‘Petrol’ (20.2%), CSO said.

#IIP series is fairly volatile. Going forward we do expect some revision in nos ~ Shivom Chakravarti, Sr Economist, @HDFC_Bank @ZeeBusiness

— HDFCBankNews (@HDFCBankNews) July 12, 2016