Industrial output grows at 4.2% in July; manufacturing activity improves

Industrial production expanded at a higher rate of 4.2% in July this year compared to the same month last year as manufacturing activity and offtake of capital goods improved.

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The industrial production had grown by 0.9% in July last year.

Industrial growth, measured in terms of the Index of Industrial Production (IIP), was at 3.5% in April-July period against 3.6% in the year-ago period, the data released by the Central Statistics Office (CSO) on Friday showed.

Moreover, the IIP growth for June has been revised upwards to 4.36% from provisional estimate of 3.8% released last month.

The manufacturing sector, which constitutes over 75% of the index, grew by 4.7% in July 2015 against a contraction of 0.3% in the same month last year.

The output of capital goods, a barometer of investment, grew at an impressive rate of 10.6% against a contraction of 3% in the same month last year.

The mining sector growth was at 1.3% in July against 0.1% in the same month last fiscal.

Power generation growth slowed to 3.5% in July compared to 11.4% in the same month a year ago.

The consumer durables goods output expanded at 11.4% in July compared to a contraction of 20.4% in the month a year ago.

Overall consumer goods output rose by 1.3% in July compared to a contraction of 5.9% in the month a year ago.

In terms of industries, 12 out of 22 groups in the manufacturing sector showed positive growth in July.