Industrial Production was slack in May

Industrial production in May slowed to a mere 2.7% from 5.6% a year ago. It was dragged down by manufacturing, offering more reasons for an RBI rate cut.

The Index of Industrial Production (IIP) for April too has been at 3.36% as opposed to the earlier 4.1%.

The data released shows a sharp decline in output in the manufacturing sector and slight pick-up in the mining sector. Manufacturing still constitutes over 75% of the index.

Power generation also slowed from 6.7% of May last fiscal to 6% this year. The growth in manufacturing was 2.2% in May compared with 5.9% in the corresponding month of the last year. The mining sector expanded 2.8% compared with 2.5% in May 2014.

(Image credit: Indiatimes)