IIP shows consumer goods production lower than what it was four years ago Read more at: http://www.livemint.com/Money/HEnDJ4c613kkRrUBH2BSyN/IIP-shows-consumer-goods-production-lower-than-what-it-was-f.html?utm_source=copy

IP shows consumer goods production lower than what it was ago

 

 

We all know that investment demand is in poor shape and it will take a lot of time before it picks up.

That is understandable since companies are not going to commit capital expenditure in a hurry when there’s so much excess capacity and a huge mess in sectors such as power and gas and coal.

 But the chart shows that even the consumer goods industry is hardly in the pink of health. The Index of Industrial Production (IIP) data for August 2014, released last Friday, showed the consumer goods index falling 6.9% from a year ago.

 Part of the slowdown has been attributed to one-off factors, such as the closure of Nokia’s Chennai factory.

 But it gets far worse than that. photo The chart shows the consumer goods index came in at 159.9 for August 2014, slightly lower than where it was in November 2009. Of course, the index is not adjusted for seasonal factors, so comparing August with November would not be right.

 But, even if we take the consumer goods index for August 2009, we find that the index is only 2.2% higher in August 2014. In other words, if the IIP numbers are correct, growth in consumer goods production between August 2009 and August 2014, or in the last five years, has been all of 2.2%. And the consumer goods index is lower by 2.3% in August 2014 than where it was four years ago,

in August 2010. Either the industrial slowdown is far worse than what it’s made out to be, or there’s something wrong with the IIP numbers.

Comment; The Index of Industrial Production (IIP) data for August 2014, released last Friday, showed the consumer goods index falling 6.9% from a year ago. Ip growth rate is very low in some next because   Indian economy growth  rate is very low and  production rate is veru high because all company make a all product spouse  reliance product . petrol. Vegetable ,cloths .sleeper etc. reliance effected other production company sale is low and effected production .

md.aquil alam

 pgdm 3rd semester 

iimt college of management 

source.live mint

IIP shows consumer goods production lower than what it was four years ago

Read more at: http://www.livemint.com/Money/HEnDJ4c613kkRrUBH2BSyN/IIP-shows-consumer-goods-production-lower-than-what-it-was-f.html?utm_source=copy

IIP shows consumer goods production lower than what it was four years ago

Read more at: http://www.livemint.com/Money/HEnDJ4c613kkRrUBH2BSyN/IIP-shows-consumer-goods-production-lower-than-what-it-was-f.html?utm_source=copy