Factory output growth in December 2018 rose to 2.4 percent as compared to a 17-month low of 0.5 percent in November 2018, on account of contraction in the mining segment and poor show by the manufacturing sector.

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Factory output as measured in terms of the Index of Industrial Production (IIP) had grown by 7.3 percent in December 2017, according to the data released by the Central Statistics Office (CSO) on Tuesday.

The industrial growth for November 2018 was revised downwards to 0.3 percent from the provisional estimate of 0.5 percent released last month.

During April-December 2018-19, industrial output grew at 4.6 percent against 3.7 percent in the same period of the previous fiscal.

As per data released by the Central Statistics Office (CSO) on Tuesday, the indices of industrial production for the mining, manufacturing and electricity sectors for the month of December 2018 stood at -1 percent, 2.7 percent and 4.4 percent, respectively.

source: tradingeconomics.com

A poll conducted by CNBC-TV18 showed that the IIP for December 2018 is expected to be in the range of 1.5 percent and 2.8 percent, indicating that the street is expecting a slight pickup on a month-on-month (MoM) basis.

Last month, industrial growth unexpectedly fell to a 17-month low of 0.5 percent. The analysts, hence, expect a recovery this time.

The core sector for December, which is 40 percent of the Index of Industrial Production (IIP), had slowed down to an 18-month low of 2.6 percent versus 3.4 percent.

As per FADA, in automobile sector, passenger vehicle sales were down 3 percent in December. Commercial vehicles sales also declined to 78 percent.

Nikkei manufacturing PMI rose to 53.9 in December compared to 53.2 in November 2018.

First Published:Feb 12, 2019 5:32 PM IST