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Regular-article-logo Tuesday, 21 May 2024

July factory output falls at lower rate

Analysts expect industries to take a longer time to recover because of the localised lockdown to contain the pandemic

Our Special Correspondent New Delhi Published 12.09.20, 01:52 AM
Industrial output contracted for the fifth straight month in July

Industrial output contracted for the fifth straight month in July Shutterstock

Industrial output declined 10.4 per cent in July — contracting for the fifth straight month, though at a milder pace — pulled down by lower output in manufacturing, mining and power generation.

Analysts expect industries to take a longer time to recover because of the localised lockdown to contain the pandemic, which is spreading at a rapid pace across the country.

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“The indices for June 2020 have undergone the first revision and those for April 2020 have undergone the final revision.

“The Quick Estimates for July 2020 have been compiled at a weighted response rate of 87 per cent, the first revision for June 2020 at a weighted response rate of 93 per cent and the final revision for April 2020 at a weighted response rate of 94 per cent,” the ministry of statistics and programme implementation said. However, it was silent on the revision of May output numbers.

The index for July 2020 stands at 118.1 compared with 54.0 in April, 89.5 in May and 108.9 in June. The index had contracted 15.7 per cent in June; 33.8 per cent in May and 57.3 per cent in April. In July last year, factory output had expanded by 4.9 per cent.

Shilan Shah, senior India economist, Capital Economics said: “With India now on course to becoming the epicentre of the coronavirus, restrictions are likely to remain in place for a long time which will continue to hold back industrial recovery.”

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