Industrial output dips again in June

Growth in industrial output slipped again in June from last year, as rising raw material and energy costs coupled with hardening interest rates hit consumer as well as corporate demand. However, industrial growth improved from the six-year low hit in May. The index of industrial production (IIP) stood at 269.1 in June as against 255.3 in the same month a year ago, translating into a year-on-year growth rate of 5.4% in industrial production versus 8.9% in June 2007. The reading for June was in line with market expectations. Meanwhile, the Government revised the industrial production figure for May to 4.1% from the preliminary estimate of 3.8%. Manufacturing growth in June was 5.9% compared to 9.7% in the corresponding month a year earlier. Mining sector growth stood at 2.9% in June as against 1.5% in the same month last year. Electricity growth was 2.6% versus 6.8% in June 2007. On a cumulative basis, the industrial output growth halved to 5.2% during April-June 2008-09 from 10.3% in the corresponding period of last year.