Factory output shrinks by 1.1 %

New Delhi: Industrial production or factory output, measured by the estimate of Index of Industrial Production (IIP) shrank by 1.1 per cent in August compared with an expansion of 4.3 per cent in July, according to data released by Ministry of Statistics & Programme Implementation.

Analysts polled by Reuters had forecast industrial output for the month to have grown at 1.8 per cent.

The cumulative growth in April-August over the corresponding period of the previous year was 2.4 per cent.

“Fifteen out of 23 industry groups in the manufacturing sector have shown negative growth during the month of August 2019 as compared to the corresponding month of the previous year,” Ministry of Statistics & Programme Implementation said in a press release.

The factory output growth declined in August on account of poor show by capital goods sector, according to official data.