Factory output growth sequentially slows to 4.3% in December 2022

The country’s industrial production growth slipped to 4.3 per cent in December 2022 from 7.3 per cent in November 2022, mainly due to subdued performance of the manufacturing sector, according to official data released on Friday. 

However, there was improvement on an annual basis as the factory output growth measured in terms of the Index of Industrial Production (IIP) stood at 1 per cent in December 2021. 

According to the IIP data released by the National Statistical Office (NSO), the manufacturing sector’s output grew by 2.6 per cent in December 2022 from 0.6 per cent a year ago. The growth stood at 6.4 per cent in the preceding month of November 2022. 

Mining output rose by 9.8 per cent during the month under review, from 2.6 per cent in December 2021. Power generation increased by 10.4 per cent in December 2022 compared to 2.8 per cent in the year-ago month. 

According to use-based classification, the capital goods segment recorded growth of 7.6 per cent in December against a decline of 3 per cent in the corresponding month of the last financial year.

Consumer durables output declined by 10.4 per cent compared to a contraction of 1.9 per cent a year ago. 

Consumer non-durable goods output expanded by 7.2 per cent as against growth of 0.3 per cent earlier. 

Infrastructure and construction goods too posted growth of 8.2 per cent as against 2 per cent in the same month of 2021. 

The data also showed that the output of primary goods logged 8.3 per cent growth in the month as against 2.8 per cent in the same period a year ago. 

In the nine months of FY23 (April-December 2022), growth in IIP works out to 5.4 per cent, down from 15.3 per cent in the year-ago period. 

Report By