IIP growth at 8-month low in November: What do the numbers say about Indian economy?
Also Read: Nifty 50 takes just 26 days to jump from 21k to 22k; Tata Consumer, Bajaj Auto, Wipro jump up to 21% in this period The growth of the manufacturing sector fell to 1.2% YoY in November 2023, sharply down from 6.7% YoY a year ago. Electricity output rose by 5.8% YoY, which is far lower than the 20.4% YoY growth seen in October 2023. Mining also slowed down to 6.8% YoY compared with 13.1% YoY growth in October 2023.
All three segments have seen an impact because of an adverse base, said ICICI Bank Global Markets. Only six categories recorded expansion in November 2023: Within manufacturing, six categories recorded expansion in November 2023 versus 19 in the previous month (October), indicating a sharp deceleration within the industry. Coke and refined petroleum products, basic metals, motor vehicles, and other transport equipment recorded positive growth.
Also Read: Nifty 50 advances for 5th straight session, crosses 22,000 mark for first time On the other hand, pharma, chemical products, wearing apparel, computer and electronics, electrical equipment and machinery & equipment and furniture recorded contraction, as stated by ICICI Bank Global Markets. Slowdown in capex visible in capital goods and infra/construction goods production: From a use-based perspective, ICICI Bank Global Markets said that three out of the six components, including capital goods, consumer durables, and consumer non-durables, recorded contractions. The infrastructure and construction goods sector reported a sharp downtick of 1.5% YoY in November due to an unfavourable base and lower government capex.
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