Industrial output rose by 5.2 per cent year-on-year in May, data from the Ministry of Statistics showed on Wednesday. 

Manufacturing, which accounts for about 17 per cent of the Indian economy, rose by 5.7 per cent year-on-year in May from a revised 5.2 per cent year-on-year growth recorded in April. 

Electricity generation during May rose by 0.9 per cent over the same period a year earlier, while mining activities increased by 6.4 per cent, the data showed. 

In April, electricity generation had fallen by 1.1 per cent, and mining activities had increased by 5.1 per cent. 

Infrastructure or construction goods grew by 14 per cent year-on-year during the month from a revised 15 per cent year-on-year growth in April. Capital goods grew by 8.2 per cent compared to a year earlier. 

Consumer durables output grew by 1.1 per cent year-on-year in May from a revised year-on-year decline of 2.5 per cent in the previous month. Consumer non-durables showed 7.6 per cent year-on-year growth, compared to revised 11 per cent growth in April. 

“Growth in fast moving consumer goods can be attributed to some revival in rural demand post-Rabi harvest,” said Madan Sabnavis, an economist of Bank of Baroda, referring to crops sown in winter. 

The year-on-year performance of high frequency indicators for freight and traffic movement dipped in June compared to May, but electricity generation, coal output and finished steel consumption improved, said Aditi Nayar, an economist of ICRA. 

“Based on these trends, ICRA expects the year-on-year IIP (Index of Industrial Production) growth to moderate to about 3 to 4 per cent in June,” Ms Nayar said.