Economy remained sluggish in January

Sluggishness in the economy continued in January: industrial production contracted by 1.5 per cent in the month — its third straight month of drop — due to poor performance of manufacturing sector and lower offtake of capital goods. The index had registered a growth of 2.8 per cent in January last year.

Factory output measured in terms of Index of Industrial Production (IIP) declined by 3.4 per cent in November and 1.2 per cent in December, according to the data released by Central Statistics Office (CSO).

During April-January, industrial growth remained flat at 2.7 compared to the year ago period. The decline in January has been primarily on account of a massive drop in output of capital goods, which showed a contraction of 20.4 per cent in January compared to a growth of 12.4 per cent in the same month a year ago. The manufacturing sector, which accounts for over 75 per cent of the index, declined by 2.8 per cent against a growth of 3.4 per cent in January 2015.

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