Industrial output growth eases to 6.7% in July as three sectors slow | Economy & Policy News

Growth in manufacturing, which carries the largest weight in the index, moderated to 7.3 per cent during the month from 9.5 per cent in June. Within the sector, 19 of the 23 industry groups at the two-digit level expanded compared with a year earlier.

The manufacture of electrical equipment led the gains with a 28.3 per cent expansion, followed by motor vehicles, trailers and semi-trailers (22.2 per cent) and machinery and equipment not elsewhere classified (12.1 per cent). Beverages (21.9 per cent) and other transport equipment (22 per cent) also posted strong double-digit growth.

The four industry groups that contracted were pharmaceuticals (-5.6 per cent), tobacco products (-12.2 per cent), chemical products (-2.7 per cent) and wearing apparel (-0.6 per cent).

Electricity and gas supply remained the fastest-growing segment, expanding 8.7 per cent, but down from the 11.3 per cent growth recorded in June.

Within it, electricity generation from non-renewable sources rose 12.5 per cent and the electricity sub-component grew 9.3 per cent, while renewable generation increased 3.2 per cent and gas supply edged down 1 per cent.

Water supply, sewerage and waste management grew 7.4 per cent. Mining and quarrying, however, contracted 0.9 per cent, reversing the previous month’s gain, dragged down by non-metallic minerals (-12.5 per cent) and fuel minerals (-1.3 per cent). Metallic minerals, however, bucked the trend with 24.3 per cent growth.

Under the use-based classification, five of the six segments, excluding consumer durables, recorded slower growth in July compared with the preceding month. Notably, consumer non-durables contracted 1 per cent, reversing strong growth of 5.6 per cent in the previous month.