TIL Desk/Business/New Delhi/ In signs of continuing weakness in the economy, India’s factory output shrank to the lowest level in eight years as all three broad-based sectors of capital goods production, consumer durables, and infrastructure and construction goods contracted.
The Index of Industrial Production (IIP) fell 4.3 per cent in September as compared to a contraction by 1.4 per cent in August 2019 and a growth of 4.6 per cent in factory output in the same month a year back, data released by the Ministry of Statistics showed on Monday.
The second straight month of contraction has taken the IIP to its lowest level since it shrank by 5 per cent in October 2011. On a quarterly basis, the second quarter of 2019-20 fiscal (July-September) saw IIP contracting by 0.4 per cent (Q1 3 per cent expansion and 5.3 per cent growth in Q2 FY19).
In September 2019, capital goods output dropped 20.7 per cent from a year ago, while consumer durables fell 9.9 per cent. Infrastructure and construction goods output fell 6.4 per cent. Intermediate goods was the only use-based classification that grew 7 per cent in September.
