May factory output up 5.2%

After moderating for four months, retail inflation grew higher-than-expected in the month of June on the back of higher food prices. Factory output, as measured by the Index of Industrial Production (IIP), meanwhile, rose 5.2% in May, the highest since February 2023.

- Pavitra Kanagaraj

According to data released by the National Statistical Office (NSO), industrial growth rose 5.2% in May from 4.5% in April. The latest number positively surprised analysts since it turned out marginally higher than the Bloomberg forecast of 5%.

Manufacturing, which has a weight of more than three-fourth of the index, grew at 5.7% in May, from 5.2% in April. Electricity sector grew by 0.85% in May against a 1.1% contraction in April, signalling the rise in power demand owing to high temperatures in May.