May IIP beats expectations

India's industrial output, as measured by the index of industrial production (IIP) rose 2.7% in May as against expectations of 1.3-15%. India's April-May 2009 industrial output rose 1.9% from 5.3% year ago. The Government announced that it was revising March industrial output to -0.75% from -0.8%, and April's figure to 1.2% as against 1.4%.

Manufacturing segment, which accounts for the major chunk of IIP, grew by 2.5% in May 2009 as against 4.5% in the same month last year. The mining group’s output expanded by 3.7% in the month under review versus 5.5% recorded in May 2008. Electricity segment saw a growth of 3.3% in May 2009 as against 2% in the year-ago period.

Category wise, Basic Goods grew by 3.8% in May 2009 versus 3% last year, while Capital Goods witnessed a drop of 3.6% in the month as against a growth of 4.3% in May 2008. Intermediate Goods growth stood at 6.1% in the month compared to 1.9% in the same month a year earlier.

Growth in overall Consumer Goods was at 1.2% in May 2009 versus 7.4% in May 2008. Consumer Durables saw did extremely well, notching up a growth of 12.4% as against 2.8% in May 2008. Consumer Non-Durables contracted by 2.3% in the month under consideration versus 9% in the year-ago period.