Who wrote this article?

Deepak Shenoy, Capitalmind's research team.

IIP for May 2016 At A Boring 1.2%. Is IIP Even Relevant Now?

13 Jul 2016Deepak Shenoy1 min read

Quick Facts

What is "IIP for May 2016 At A Boring 1.2%. Is IIP Even Relevant Now?" about?
What category is this article in?: Charts And Analysis
Who wrote this article?: Deepak Shenoy, Capitalmind's research team.
When was this article published?: Published 13 July 2016.
How long does this article take to read?: 1 min read
What topics does this article cover?: IIP
What does the "Components: Nothing To Write Home About" section say?: Manufacturing grew at 0.7% and Mining and electricity have come off their high growth months.

The Index of Industrial Production (IIP) for May 2016 grew at 1.2% over the previous year.

IIP

This isn’t a big deal, and the April IIP number has been revised downwards to -1.35% (from the first reported -0.84%).

Components: Nothing To Write Home About

Manufacturing grew at 0.7% and Mining and electricity have come off their high growth months.

IIP Components

Things don’t look that great at the IIP use-case level too. Capital goods production is contracting, as is non-durables (FMCG). The rest aren’t making big noises either.

IIP By Use

Our View: IIP isn’t a great measure of anything anymore, but it’s all we have in terms of production information. More of India is services than manufacturing and we need a similar index at the services level to understand if things are indeed going well or slowing down. But hey, when we have data, we have to display it - and graphs speak better than words.