IIP in October slips to a 14-month low, Pg1

Key Highlights:

• IIP growth slowed to 0.4% in October 2025, a 14-month low.
• The electricity sector contracted by 6.9% in October 2025.
• The consumer non-durables sector decreased by 4.4% in October 2025.
• The manufacturing sector grew at 1.8%, a near two-year low.
• The mining and quarrying sector contracted 1.8% in October 2025.
• The infrastructure and construction goods sector grew by 7.1% in October 2025.

Detailed Insights:

• The Index of Industrial Production (IIP) growth in October 2025 was the lowest since August 2024, when it was 0%.
• Contraction in the electricity sector is a significant concern, reversing growth from 2% in October of the previous year.
• Negative growth in consumer goods, particularly non-durables, suggests a decrease in consumer demand and inventory adjustments.
• The mining and quarrying sector's continued contraction over the past several months indicates persistent challenges in this area.
• Despite a slowdown, the infrastructure and construction goods sector still shows positive growth, albeit lower than the previous quarter.

Key Concepts Involved:

• Index of Industrial Production (IIP): An index that shows the growth rates of various industry groups in the economy during a specified period.
• Consumer Durables: Goods that do not need to be purchased frequently because they are made to last for an extended period (e.g., appliances).
• Consumer Non-Durables: Goods that are immediately consumed or have a lifespan of less than three years (e.g., food, clothing).