The industrial output growth rose to an eight-month high in October, fuelled by the festive demand
Bengaluru: In a heartening development, the industrial output growth rose to an eight-month high in October, fuelled by the festive demand, reports by Times of India.
The website pointed at the data released by the National Statistical Office (NSO) on Friday that showed the index of industrial production (IIP) rising to an annual 3.6% in October, higher than the upwardly revised 0.5% in September and a contraction of 6.6% in October 2019.
It is important to note that, led by festival demand, both the consumer durables and non-durables sectors posted robust expansion, rising by 17.6% and 7.5% in October. The capital goods sector returned to the positive zone after 21 months, rising an annual 3.3% in October compared with a 22.4% contraction in the year earlier month. The PMI manufacturing survey has also pointed to a recovery in the manufacturing sector although some segments display some stress.
The sector had contracted for six consecutive months since March with April posting a record decline of 57.6%. But since May the contraction has narrowed as economic activity gathered momentum after the lifting of the lockdown in phases. Latest data has also shown that the economy contracted 7.5% in the September quarter, sharply shallower than the record 23.9% decline in the June quarter.
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Last Updated Dec 13, 2020, 11:46 AM IST