Industrial output up by over 7% in February

German industrial production shrank surprisingly in February 2018

UK factory output drops unexpectedly in February for 1st time in nearly a year

Overall industrial output, which combines manufacturing and energy production, rose 0.1 per cent in February, compared with a 1.3 per cent expansion in January and weaker than the 0.4 per cent consensus in the Reuters poll.

"The cumulative growth for the period April-February 2017-18 over the corresponding period of the previous year stands at 4.3 per cent".

This can be taken as a transitory change mainly on account of lower output in mining sector, said DK Srivastava, chief policy advisor at EY.

The factory output index grew 7.1 percent in December and 8.4 percent in November, last year.

Among the six use-based classification groups, the output of primary goods which has the highest weightage of 34.04 grew by 3.7 per cent.

Construction output in February dropped 1.6 per cent month-on-month after a 3.1 per cent plunge in January, confounding the consensus expectation for a 0.7 per cent rebound. Similarly, consumer non-durables's output edged-higher.

Job Losses At Jaguar Land Rover In Solihull
New vehicle sales fell 5.7 per cent in the United Kingdom in 2017 - the first decline in registrations for six years. Earlier this year, it said it would cut production amid uncertainty over Brexit and changes to taxes on diesel cars.

Among components, production of capital goods showed the biggest monthly fall of 3.6 percent, followed by a 2.1 percent decrease in durable consumer goods output. The CSO data further revealed that inflation in the fuel and light segment also came in lower at 5.73 percent on a month-on-month basis. CPI, a key data factored in by the RBI to decide the interest rate, was 4.44 per cent in February.

Meanwhile, retail inflation hit a five-month low at 4.28% in March compared with 4.44% in February.

The Bank of England is nevertheless expected to raise its benchmark interest rates to 0.75% when officials meet next month. As per data released by the Central Statistics Office (CSO), inflation in the vegetables segment cooled to 11.7 per cent in March from 17.57 per cent in the previous month.

Reacting to the macroeconomic data, Commerce and Industry Minister Suresh Prabhu said in a tweet: "The IIP for the manufacturing sector in February 2018 stands at 130.1 which is 8.7 per cent higher than in Feb 2017 with fifteen out of the twenty three industry groups showing positive growth".

"The modest stimulus to growth from sterling's 2016 depreciation has begun to fade, while the global trade upswing has lost some momentum too", Samuel Tombs, an economist at consultancy Pantheon Macroeconomics, said.

The manufacturing sector, which constitutes over 77 percent of the index, grew at 8.7 percent in February as compared to the nearly flat growth of 0.7 percent in the same month a year ago.

Latest News