Factory output inches up to 1.3% in January
After slowing to a 10-month low of 0.7 per cent last December, industrial output grew by 1.3 per cent this January, supported by manufacturing, mining, electricity output and a low base effect, as per data released by the National Statistical Office (NSO) on Friday.
While outputs of the mining, manufacturing and electricity categories stayed above pre-Covid levels, the manufacturing output came in at a lower level than the previous month as the full impact of the restrictions in view of the Omicron variant of the Covid got reflected in the production. The Index of Industrial Production (IIP) had seen 0.4 per cent growth in December 2021 — now revised up to 0.7 per cent — and contracted by 0.6 per cent in January 2021.
Ukraine impact on recovery
Manufacturing output is unlikely to rise sharply going ahead, with the Ukraine crisis a major headwind to industrial recovery.
Mining output grew 2.9 per cent in January against a 2.5 per cent contraction a year ago, while electricity output grew 0.9 per cent against 5.5 per cent. Capital goods output shrunk1.4 per cent against 9 per cent contraction a year ago. Consumer durables output shrunk 3.3 per cent, against 0.1 per cent contraction a year ago.