Industrial output drops by 1.8 per cent in June

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Indicating a persistent slowdown in the economy, industrial production has declined by 1.8 per cent in June mainly due to poor show by manufacturing and capital goods sectors.

Industrial output in the April-June quarter too contracted by 0.1 per cent in fiscal 2013, according to the official data released on Thursday.

Growth in factory output, as measured by the index of industrial production (IIP), was 9.5 per cent in June, and 6.9 per cent in April-June quarter in 2011-12.

The manufacturing sector, which constitutes over 75 per cent of the index, witnessed a slump in output by dismal 3.2 per cent in June against a growth of 11.1 per cent in the same month a year ago.

The performance of the manufacturing sector was not good in April-June quarter also as the output declined by 0.7 per cent against a growth of 7.7 per cent in the three-month period a year ago.

The capital goods production also declined by massive 27.9 per cent in June against a growth rate of 38.7 per cent a year ago.

The output of these goods contracted in April-June period by 19.6 per cent against a growth of 17 per cent in 2011-12.