IIP for June 2018 rises by 7%, at top end of estimates

Pick up in the core sectors, auto production and non-oil exports will likely result in the pick up in June IIP data, analysts said, adding that the overall, the base effect related to adjustments post demonetisation and transition to Goods and Services Tax (GST) is now behind.

Nikkei manufacturing PMI moderated to 53.1 in June 2018 compared to 51.2 in May.

The Indices of Industrial Production for the mining, manufacturing and electricity sectors for the month of June 2018 stand at 105.0, 128.6 and 159.9 respectively, with the corresponding growth rates of 6.6 percent, 6.9 percent and 8.5 percent as compared to June 2017.

The cumulative growth in these three sectors during April-June 2018 over the corresponding period of 2017 has been 5.4 percent, 5.2 percent and 4.9 percent respectively.

Nineteen out of the twenty three industry groups in the manufacturing sector have shown positive growth during the month of June 2018 as compared to the corresponding month of the previous year.

The industry group ‘manufacture of computer, electronic and optical products’ has shown the highest positive growth of 44.1 percent followed by 20.5 percent in ‘manufacture of motor vehicles, trailers and semi-trailers’ and 15.6 percent in ‘manufacture of other transport equipment’.

Along with the Quick Estimates of IIP for the month of June 2018, the indices for May 2018 have undergone the first revision and those for March 2018 have undergone the final revision in the light of the updated data received from the source agencies.