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Time of India
21 hours ago
- Business
- Time of India
At 1.5%, industrial growth slows to 10-mth low in June
NEW DELHI: Industrial output growth slowed to a 10-month low in June, dragged down by a contraction in mining and electricity sectors and sluggish capital goods and consumer durables segments. Data released by the National Statistics Office (NSO) on Monday showed the index of industrial production (IIP) rose an annual 1.5% in June, slower than the upwardly revised 1.9% in May and below the 4.9% recorded in June last year. The mining sector contracted 8.7% in June compared with a growth of 10.3% in June last year, and the electricity sector fell 2.6% during the month compared to a growth of 8.6% in June last year. The manufacturing sector remained resilient, rising 3.9% during June compared to a growth of 3.5% in June last year. Experts attributed the slowdown to excess rains which had weighed on mining and electricity sectors. "Excess rains in the second half of June 2025 are likely to have weighed on mining output, while also leading to a contraction in electricity generation, although the extent of the same narrowed compared to the previous month. Encouragingly, the growth in manufacturing output improved to 3.9% in June 2025 from 3.2% in May 2025," said Aditi Nayar, chief economist at ratings agency Icra. The data also showed weakness in other segments of the industrial sector. The capital goods sector, a key gauge of industrial activity, remained sluggish during the month, rising by 3.5% in June compared to a growth of 3.6% in June last year. The consumer durables sector slowed in June, rising by 2.9% compared to a growth of 8.8% in June last year while the consumer non-durables sector contracted by 0.4% during the month compared to a decline of 1% in June last year. "On the demand side, signals remain mixed. Output of consumer non-durables goods continued to remain weak, staying in the contractionary zone for five consecutive months, while output of consumer durable goods improved. Urban consumption, in particular, remains lagging," said Rajani Sinha, chief economist at ratings agency CareEdge. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Economic Times
a day ago
- Business
- Economic Times
Industrial Output Growth Slows to 10-mth Low in June
ANI Representational image Our BureauNew Delhi: India's industrial output growth slowed to a 10-month low at 1.5% in June, pulled down by contraction in mining and electricity sectors and subdued performance by the manufacturing sector, official data showed Monday. The Index of Industrial Production (IIP) expanded 1.9% in May and 4.7% in June 2024. "Excess rains in the second half of June 2025 are likely to have weighed on mining output, while also leading to a contraction in electricity generation, although the extent of the same narrowed compared to the previous month," said Aditi Nayar, chief economist at ratings firm ICRA. Among the three major sectors, only manufacturing grew in June, by 3.9%. Production shrank 8.7% in mining and 2.6% in electricity. "A marginal pickup in the manufacturing sector growth was more than offset by contraction in both the mining and electricity sector output," said Rajani Sinha, chief economist at CareEdge IIP growth dropped to 2% in the first quarter of the current fiscal year from 5.4% a year estimates industrial GVA (gross value added) growth to have decelerated in the first quarter ended GVA growth was 6.8% in the January-March quarter. Official figures for the June quarter will be released in the manufacturing sector, 15 of the 23 industry groups recorded growth in terms of use-based classification, two out of the six categories recorded a contraction: primary goods (3%) and consumer non-durables (0.4%)."The contraction in primary goods output reflects the weaker performance of mining," noted the positive side, infrastructure/construction goods led growth with a 7.2% increase."While private capex is yet to show meaningful traction, public capex continues to remain encouraging. However, persistent global uncertainties are weighing on the overall investment sentiment," said Sinha.
Time of India
a day ago
- Business
- Time of India
Industrial Output Growth Slows to 10-mth Low in June
Our Bureau New Delhi: India's industrial output growth slowed to a 10-month low at 1.5% in June, pulled down by contraction in mining and electricity sectors and subdued performance by the manufacturing sector, official data showed Monday. Explore courses from Top Institutes in Please select course: Select a Course Category Digital Marketing healthcare Product Management Others MBA Data Science Design Thinking Degree Operations Management Cybersecurity Data Science Data Analytics others Project Management Leadership Finance Technology MCA PGDM CXO Artificial Intelligence Public Policy Healthcare Management Skills you'll gain: Digital Marketing Strategy Search Engine Optimization (SEO) & Content Marketing Social Media Marketing & Advertising Data Analytics & Measurement Duration: 24 Weeks Indian School of Business Professional Certificate Programme in Digital Marketing Starts on Jun 26, 2024 Get Details Skills you'll gain: Digital Marketing Strategies Customer Journey Mapping Paid Advertising Campaign Management Emerging Technologies in Digital Marketing Duration: 12 Weeks Indian School of Business Digital Marketing and Analytics Starts on May 14, 2024 Get Details The Index of Industrial Production (IIP) expanded 1.9% in May and 4.7% in June 2024. "Excess rains in the second half of June 2025 are likely to have weighed on mining output, while also leading to a contraction in electricity generation, although the extent of the same narrowed compared to the previous month," said Aditi Nayar, chief economist at ratings firm ICRA . Among the three major sectors, only manufacturing grew in June, by 3.9%. Production shrank 8.7% in mining and 2.6% in electricity. Live Events "A marginal pickup in the manufacturing sector growth was more than offset by contraction in both the mining and electricity sector output," said Rajani Sinha, chief economist at CareEdge Ratings. Average IIP growth dropped to 2% in the first quarter of the current fiscal year from 5.4% a year earlier. Nayar estimates industrial GVA (gross value added) growth to have decelerated in the first quarter ended June. Industrial GVA growth was 6.8% in the January-March quarter. Official figures for the June quarter will be released in August. Within the manufacturing sector, 15 of the 23 industry groups recorded growth in June. In terms of use-based classification, two out of the six categories recorded a contraction: primary goods (3%) and consumer non-durables (0.4%). "The contraction in primary goods output reflects the weaker performance of mining," noted Nayar. On the positive side, infrastructure/construction goods led growth with a 7.2% increase. "While private capex is yet to show meaningful traction, public capex continues to remain encouraging. However, persistent global uncertainties are weighing on the overall investment sentiment," said Sinha.
The Print
a day ago
- Business
- The Print
Industrial output growth slows to 10-month low of 1.5 pc in June
The National Statistics Office (NSO) also revised upwards the pace of industrial production growth for May to 1.9 per cent from the earlier estimate of 1.2 per cent released last month. The factory output, measured in terms of the Index of Industrial Production (IIP), had expanded by 4.9 per cent in June 2024. New Delhi, Jul 28 (PTI) India's industrial production growth slowed to a 10-month low of 1.5 per cent in June 2025 due to poor performance of mining and power sectors, which were impacted by excess rains especially in second half of the month, according to official data released on Monday. The previous low pace of growth was recorded in August 2024 when the output growth stayed flat. 'Excess rains in the second half of June 2025 are likely to have weighed on mining output, while also leading to a contraction in electricity generation, although the extent of the same narrowed compared to the previous month,' said Aditi Nayar, Chief Economist, Head – Research & Outreach, ICRA, in a statement. The NSO data showed that the manufacturing sector's output growth rose marginally to 3.9 per cent in June 2025 from 3.5 per cent in the year-ago month. Mining production contracted by 8.7 per cent against a growth of 10.3 per cent recorded a year ago. Power production declined by 2.6 per cent in June 2025 against 8.6 per cent growth in the year-ago period. During the April-June quarter of FY26, industrial production growth slowed from 5.4 per cent a year ago to 2 per cent, the lowest in past 11 quarters. Nayar stated, 'In quarterly terms, the IIP growth eased to an 11-quarter low of 2.0% in Q1 FY2026 from 4.0% in Q4 FY2025, with excess rains in parts of the quarter dampening electricity generation and mining output.' Within the manufacturing sector, 15 out of 23 industry groups have recorded a positive year-on-year growth in June 2025. As per use-based classification, the capital goods segment growth decelerated to 3.5 per cent in June 2025 from 3.6 per cent in the year-ago period. Consumer durables (or white goods production) growth slowed to 2.9 per cent during the reporting month against a growth of 8.8 per cent in June 2024. In June 2025, consumer non-durables output contracted 0.4 per cent compared to a contraction of one per cent a year ago. Infrastructure/construction reported a growth of 7.2 per cent in June 2025, down from a 8.2 per cent expansion in the year-ago period. The data also showed that the output of primary goods contracted by 3 per cent in June 2025 against 6.3 per cent growth a year earlier. The expansion in the intermediate goods segment was 5.5 per cent in the month under review against 3.2 per cent a year ago. PTI KKS HVA This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Mint
a day ago
- Business
- Mint
India's industrial production rises 1.5% in June, at slowest pace in 10 months
New Delhi: India's industrial production grew 1.5% annually in June, marking its slowest pace in 10 months, as mining and electricity output slipped into contraction, data released by the ministry of statistics and programme implementation (MoSPI) on Monday showed. The muted uptick stands in stark contrast to the 4.9% expansion recorded in June last year, highlighting persistent strains across core sectors of the economy. MoSPI revised May's growth figure to 1.9%, from 1.2% earlier, which still outpaces the June figure. Industrial performance through last year remained volatile, surging in May but flattening by August, underlining the lack of consistent recovery. The weak June reading reflects a fragile and uneven rebound in industrial activity, amid soft domestic demand, global economic uncertainty, and sector-specific challenges. Manufacturing, which constitutes almost 78% of the Index of Industrial Production (IIP), saw output rise 3.9% annually in June, higher than the 3.2% reported in May and 3.5% growth in June 2024. Mining output contracted by 8.7% annually in June, compared to a 0.1% contraction in May, and a 10.3% expansion in the year-ago period. Electricity generation shrank 2.6% annually in June, compared to a 4.7% contraction in May and an 8.6% expansion in the year-ago period. Among use-based classifications, the production of intermediate goods and infrastructure/construction goods showed a sequential rise. Intermediate goods output rose 5.5% annually in June, compared to a 4.7% annual growth registered the previous month. Infrastructure/ construction goods output rose 7.2% annually in June, compared to 6.7% in May. Capital goods production fell 3.5% annually in June, down from 13.3% in the previous month. Meanwhile, primary goods production contracted by 3% annually in June, compared to a 1.4% contraction in May. Production of consumer durable goods rose by 2.9% annually in June compared to a contraction of 0.9% in the previous month. During the same period, production of consumer non-durables contracted by 0.4% annually, compared with a 1% contraction reported in the previous month. The June IIP numbers came in below expectations. Rating company Icra Ltd. had projected a 2% rise in industrial output. "The deceleration was entirely led by mining, which reported a steeper contraction of 8.7% in the month as compared to the 0.1% dip seen in May 2025. Excess rains in the second half of June 2025 are likely to have weighed on mining output, while also leading to a contraction in electricity generation, although the extent of the same narrowed compared to the previous month," said Aditi Nayar, chief economist at Icra. "Encouragingly, the growth in manufacturing output improved to 3.9% in June 2025 from 3.2% in May 2025," Nayar added.
