Industrial Output Index

rawan239

1 week ago

Slowdown in Industrial Growth: IIP grew by only 2.9% in February 2025, the slowest in six months, significantly below the expected 4%.
Sectoral Deceleration: All key sectors experienced slower growth.
- Mining slowed sharply to 1.6% (from 8.1% in Feb 2024).
- Manufacturing grew at 2.9% (down from 4.9% a year ago).
- Electricity output growth dropped to 3.6% (from 7.6% in Feb 2024).
High Base Effect & Slowing Growth: Combination of high base effects and slower growth in mining and manufacturing led to the decline.
Use-Based Classification:
- Except for capital goods, all other goods categories saw slower output growth.
- Capital goods grew fastest at 8.2%.
- Intermediate goods grew slowest at 1.5%.
- Consumer non-durables continued to decline, although at a slower pace (-2.1%).
Worrying Trend: Output growth across all use-based sub-sectors declined compared to the previous month, indicating muted industrial output.
Analyst Views: Deceleration primarily driven by manufacturing, partially offset by higher power demand. Anticipation of accelerated growth in March due to inventory build-up before U.S. tariff announcements.
IIP Basics: Measures short-term changes in industrial production volume across mining, manufacturing, and electricity. Published by CSO, MoSPI. Base year is 2011-12.