Sept factory output growS 5.8% on year

Factory output, as measured by the Index of Industrial Production (IIP) grew 5.8% on a year-on-year basis in the month of September according to data released by the National Statistical Office (NSO).

- Ashokamithran T

Coming significantly lower than the 10.3% growth in August, the latest IIP numbers underline the moderation in economic momentum as seen in other high frequency indicators such as the Purchasing Managers' Index (PMI) for manufacturing.

To be sure, analysts maintain that economic activity continues to remain resilient despite a loss in momentum.

IIP growth saw a moderation across sectors in the month of September with annual growth for mining, manufacturing and electricity sub-sectors falling from 12.4%, 9.3% and 15.3% in August 2023 to 11.5%, 4.5% and 9.8% respectively.