All Members,

 

May 2013 IIP declines by 1.6%

 

June CPI inflation rises to 9.87% from 9.31% for the month of May 2013

 

Growth in industry output, as measured in terms of IIP, for the month of May 2013 is estimated at (-) 1.6% as compared with 2.3% during April 2013. The cumulative growth for the period April-May 2013-14 stands at 0.1% as compared to 0.6% in the corresponding period of the previous year.

 

The growth in the three sectors mining, manufacturing and electricity in May 2013 stands at (-) 5.7%, (-) 2% and 6.2% as compared to (-) 3%, 2.8% and 4.2% during April 2013 respectively. The cumulative growth for the period April- May 2013- 2014 in the three sectors mining, manufacturing and electricity over the corresponding year stands at (-) 4.5%, 0.1% and 5.3% respectively.

 

   Recent growth pattern in IIP                                                                               (% growth)

Industry Group	Weight in IIP	Apr- May	Apr-May	April	May
		2012-13	2013-14	2013	2013
Mining	14.2	(-) 1.7	(-) 4.5	-3	(-) 5.7
Manufacturing	75.5	0.4	0.1	2.8	(-) 2
Electricity	10.3	5.2	5.3	4.2	6.2
Use based classification
Basic goods	45.7	3.2	0.7	2.1	(-) 0.4
Capital goods	8.8	(-) 15.2	(-)1.5	1.0	(-) 2.7
Intermediate goods	15.7	0.8	2.1	2.4	1.5
Consumer Goods
Consumer goods	29.8	4	(-) 1	2.8	(-) 4
a) Consumer durables	8.5	7.5	(-) 9.6	(-) 8.3	(-)10.4
b) Consumer non-durables	21.3	1.1	6.7	12.3	1.7
Overall IIP	100	0.6	0.1	2.3	(-) 1.6

 

                                                                                                                        

 

 

 

 

 

 

 

 

 

 

    

 

 

 

       Source: PHD Research Bureau, compiled from CSO

 

 

Basic goods have grown at (-) 0.4% during May 2013 as compared to 2.1% during April 2013. The cumulative growth during April - May 2013-14 stands at 0.7% as compared to 3.2% during the corresponding period of last year. Consumer goods have grown at (-) 4% during May 2013 as compared to 2.8% during April 2013. Consumer durables have grown at (-) 10.4% during May 2013 as compared to (-) 8.3% during April 2013, while consumer non durables have grown at 1.7% during May 2013 as compared to 12.3% during April 2013.

 

The cumulative growth of consumer goods during Apr-May 2013-14 stands at (-) 1% as against 4% during the corresponding period last year. Consumer durables have shown a cumulative growth of (-)9.6% during Apr-May 2013-14  as against 7.5% during Apr-May 2012-13, while consumer non durables have shown a cumulative growth of 6.7% during Apr-May 2013-14 as compared to 1.1% during Apr-May 2012-13.

 

Some of the important items showing high negative growth during the current month over the same month in previous year include Fruit Pulp (-) 51.1%, Sugar (including sugar cubes)(-) 37.8%, Cigarettes (-)35.7%, Polyester Chips (-) 26.6%, Copper and Copper Products (-)67.3%, Boilers (-) 32.9%, Earth Moving Machinery (-) 30.3%, Sugar Machinery (-) 70.2%, Plastic Machinery including Moulding Machinery (-) 48.0%, Computers (-) 33% and Telephone Instruments including Mobile Phones & Accessories (-) 28.6%.

 

Some of the other important items showing high positive growth are Leather Garments (27.0%), Fuel, Aviation Turbine (32.5%), Vitamins’ (75.7%), Antibiotics & its preparations (33.2%), PVC Pipes and Tubes (31.0%), Tractors’ (31.3%), Cable, Rubber Insulated (56.6%) and Gems and Jewellery (31.3%).

 

 

Trend in IIP growth                                                                                     (%)

 

  Source: PHD Research Bureau, compiled from CSO

 

Capital goods have grown at (-) 2.7% during May 2013 as compared to 1% during April 2013. The cumulative growth of capital goods stands at (-) 1.5% during April- May 2013-14 as compared to (-) 15.2% during April- May 2012-13.

 

Trend in the growth of capital goods                                                     (%)

  Source: PHD Research Bureau, compiled from CSO

 

 

June CPI Inflation at 9.87%-- The all India general CPI (Combined) for June 2013 stands at 9.87% as compared to 9.31% for May 2013. The inflation rates for rural and urban areas for June 2013 are 9.63% and 10.13% respectively as compared to 8.98% and 9.65% respectively for May 2013.

 

 

Warm regards,

 

Dr. S P Sharma

Chief Economist

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PHD Research Bureau

PHD Chamber of Commerce and Industry

August Kranti Marg, New Delhi