Industrial growth slows to 4.1% in August

The industrial growth of the country slowed to 4.1 percent in August on account of the poor performance of the manufacturing sector and a decline in mining output, indicating an economic slowdown.

Growth in factory output, as measured in terms of the Index of Industrial Production (IIP), stood at 4.5 percent in August last year.

During the April-August period this fiscal, IIP growth stood at 5.6 percent, as against 8.7 percent in the same period last year.

Meanwhile, the IIP growth figure for July this year has been revised upward to 3.8 percent from the provisional estimate of 3.3 percent.

The output of the manufacturing sector, which constitutes over 75 percent of the index, grew by only 4.5 percent in August, compared to 4.7 percent expansion in the same month last year, according to official data released on Wednesday.

Mining output declined by 3.4 percent in August this year, as against a growth of 5.9 percent in the same month last year.

Growth in capital goods output slowed to 3.9 percent in August, in comparison to a growth of 4.7 percent in the same month of 2010.

Growth in production of intermediate goods slowed to 1.3 percent during the month under review, as against a growth of 5.8 percent in August, 2010.

Consumer durables output grew by 4.6 percent in August, compared to a growth of 8.1 percent in the corresponding month last year.

However, electricity production improved, witnessing growth of 9.5 percent in August this year, as against mere growth of a mere 1 percent in August, 2010.