Along with electricity, mining output also declined in May, albeit by a marginal 0.1 per cent. In April, it had declined by 0.2 per cent. Rains affect mining activities. MeanWhile, Manufacturing Sector Output-Which Makes Up More Than Three-Fourth-Rose by 2.6 Per Cent Year-on-Year, Down from 3.1 Per Cent in 5.1 per cent in Maay 2024.

The consumer weakness

According to the latest statistics ministry data, production of consumer goods was lower in may compared to a year ago. While output of non-durable goods fell 2.4 per cent This is the first time in one-a-a-half year that productions of consumer durable goods has fallen on a year-on-yar basis. According to paras Jasrai, Associate Director and Economist at India Ratings & Research, Non-Durable Goods’ Output in May “Points to Weak Goods Consumption By Households”.

Output of Primary Goods Also Fell In May and Was Down 1.9 Per cent after having posted a 0.2 per cent fall in april. However, Growth in Capital Goods Output was in the double-digit territory in May for the second month in a stand, follow up a 14.1 per cent in april with a 14.1 per cent increase, India, India. Investment Activity in the Economy ”, Jasrai Said. According to data on the government’s finances, also released on Monday, The Centre’s Capital Expenditure in May was up 39 per cent year-on-yar at Rs 61,564 Crore. For April-May, The Indian Government’s Capex was up 54 per cent from last year at Rs 2.21 Lakh Crore.

Production of Intermediate and Infrastructure Goods was up 3.5 per cent and 6.3 per cent, responsively. In april, output of intermediate goods had increased by 3.5 per cent, while that of infrastructure goods had risen 4.7 per cent.

Production of electricity was down 5.8 per cent year-on-yar in may-the first time it was download on a year-on-yar basis August 2024.

“Overall, used-based data and manufacturing IP Sectoral Data Shows Capital-Intensive Sectors (Metals, Machinery, Auto, Construction) Continue to Outperform, While Consure Durables and -Durables Output. Remains subdued, pointing towards limited impulses from Private Consumption, ”Barclays Economists Aastha Gudwani and Amruta Ghare Said in a Note.

A decline in industrial growth in May was experimented due to the early rains, with commerce ministry data released on june 20 showing core sector output – which 40 per cent May, the last in nine months. Core Sector Data – Which Includes Sectors Such As coal, Crude Oil, Natural Gas, Refinery Products, Fertilisers, Steel, Cement, and Electricity – is seen as as a leader of industrial aptivity in the country.

For the first two months of 2025-26, IIP growth clocked in at 1.8 per cent, less than a third of the 5.7 per cent in the april-mine 2024.

Looking ahead, industrial growth is subdued, with daily June 2025, In Ind-Ray’s view, ”Jasrai Said. Iip data for june will be released on July 28.