Industrial growth slowdown in May 2008

New Delhi, Jul 11 (UNI) Industrial growth in the country suffered a slowdown as reflected in the 3.5 per cent rise in May 2008 on a year-on-year basis, dropping from last month's revised 6.5 per cent, data shows.

According to the Quick Estimates of Index of Industrial Production (IIP) with base 1993-94 for the month, released by the Central Statistical Organisation, the general index stood at 273.2, which is 3.8 per cent higher compared to May 2007. The cumulative growth for the period April-May 2008-09 was at 5 per cent over the corresponding period of the pervious year.

While consumer non-durables saw growth of 8.1 per cent, consumer durables of 4.4 per cent, taking the overall growth in consumer goods to 7.2 per cent year-on-year from 8.6 per cent in the previous month.

Indices for the mining, manufacturing and electricity sectors were pegged at 176.8, 291.5, and 230.1 respectively, with the corresponding growth rates of 5.2 per cent, 3.9 per cent and 2 per cent compared to May 2007. The cumulative growth during April-May 2008-09 over the corresponding period of 2007-08 in the three sectors have been 5.6 per cent, 5.3 per cent and 1.7 per cent respectively, which moved the overall growth in the General Index to 5.0 per cent.

Eleven of the 17 industry groups reported positive growth during May 2008 compared to a year ago. The highest growth -- a whopping 31.1 per cent -- was registered by the industry group 'Beverages, Tobacco and Related Products', followed by 'Transport Equipment and Parts' (12.3 per cent) and 'Basic Chemicals and Chemical Products (except products of Petroleum and Coal)' (9.5 per cent).

Negative growth was seen in the industry group 'Wood and Wood Products; Furniture and Fixtures' of 30.7 per cent followed by 'Rubber, Plastic, Petroleum and Coal Products' (10.4 per cent) and 'Jute and Other Vegetables Fibre Textile (except Cotton)' (9 per cent).

As per use-based classification, the sectoral growth rates in May 2008 over May 2007 were 3 per cent in basic goods, 2.5 per cent in capital goods and 1.2 per cent in intermediate goods.

Meanwhile, the indices for April 2008 have undergone first revision and those for February 2008 have undergone the second and final revision following updated data received from source agencies.

UNI SD MP AS1836