The general index of industrial production (IIP) fell to 3.2% compared to last month, fell short of estimates from the CNBC-TV18 poll.

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The IIP for the month of May rose to 128.8, on a year-on-year basis, the Ministry of Statistics and Programme Implementation said.

The cumulative growth for the 11-month period of April-May is at 4%.

"For IIP, we are looking at a slightly higher number and hence we are surprised on that front, because most of the indicators have been suggesting an improvement in the factory activity. So, we were not really looking for such a low number,” Upasana Bhardwaj, senior economist, Kotak Mahindra Bank said.

source: tradingeconomics.com

A poll conducted by CNBC-TV18 showed that the IIP for May 2018 is expected to be in the range of 3.5% and 4.2%.

The month of May is a seasonally weak month for industrial production, analysts said, adding that the vehicle sales were up 12.13% year-on-year.

The IIP was down to 2.9% in May 2017, compared to 3.1% in April 2017.

"13 out of 23 industry groups in the manufacturing sector have shown positive growth during the month of May 2018 as compared to the corresponding month of the previous year," the report said.

The Indices of Industrial Production for the mining, manufacturing and electricity sectors for the month of May 2018 stand at 107.5, 129.1 and 164.7 respectively, with the corresponding growth rates of 5.7%, 2.8% and 4.2% as compared to May 2017.

The cumulative growth in these three sectors during April-May 2018 over the corresponding period of 2017 has been 4.9%, 4% and 3.1% respectively.

The computer, electronic and optical products manufacturing sector has shown the highest positive growth of 27%, followed by the motor vehicles, trailers and semi-trailers manufacturing sector at 21.1%.

Other manufacturing has shown the highest negative growth of (-) 31.9% followed by (-) 15.6% in manufacture of tobacco products and (-) 12.8% in manufacture of wearing apparel.

Nikkei manufacturing PMI moderated to 51.2 in May 2018 compared to 51.6 in April.

First Published:Jul 12, 2018 5:40 PM IST