Emkay: IIP growth at 5.6%; Manufacturing growth down by 9% mom

IIP growth at 5.6%; Manufacturing growth down by 9% mom
Index of Industrial Production (IIP) for August 2010 stood at 5.6% compared to
10.6% for the same period the previous year, pulled down by growth in
manufacturing, that dropped by 9% mom; the highest contraction for Aug. since
1988.
IIP growth for the month of July FY11 has been revised upwards to 15.2% from
13.76%; owing to an upward revision in manufacturing growth.
Sectorally, manufacturing growth dropped to 5.9% from 16.7% last month and
electricity generation dropped to 1% from 3.7%.
On use-based classification, capital goods production dropped by ~40% mom
compared to the spurt in production last month. YoY growth stood negative at -
2.6%.
Of the capital goods, Machinery & Equipment growth that saw a spurt last month
by 45.8% mom fell by 33.3% mom.
Growth in consumer goods moved southward to 6.9% from last month’s 7.8% due
to a drop in non-durable goods production by 1.6% mom.
The month of September is likely to see