The country’s industrial production contracted for the fifth consecutive month in July but the place of decline has slowed, reflecting the increase in economic activity after the using of lockdown across the country.
Data released by the National Statistical Office (NSO) on Friday shows the Index of Industrial Production (iip) fell 10.4% in July, slower than the previous months 15.8% decline. During the April July period industrial production contracted 29.2% compared to an expansion of 3.5 % in the year ago period, highlighting the stress in the key sector.
Overall the industrial sector remains in dire state with the manufacturing sector contracting 11.1% in July compared to the 4.8 % growth in July 2019. The capital goods sector which is a key gauge of investment activity contracted 20.8% in July compared to a decline of 7% in the year ago period. The crucial segment has been under stress for significant period and the strict lockdown has hurt the sector.
Economist said that the easing of lockdown and the impending festival season are likely to boost some sectors and help in better overall numbers in the months ahead.
The improvement in the negative growth number on a month on month basis is a positive factor in this pictureMadan Sabnavis
Besides this, passenger vehicle sales up 14% in August and bikes increased by 3%. Passenger vehicle sales have returned to positive territory after nine consecutive months of decline. It was in October last year that the segment has posted a marginal growth when it snapped 11 continuous months of decline in sales.
we are beginning to observe growth which is instilling confidence back into the industry especially in two wheeler and the passenger vehicle segmentSiam, president Kenichi ayukawa