The MPI figure released by the Central Bureau of Statistics (CBS) on Wednesday has attributed the weak manufacturing output to decline in production of major construction materials like iron rod and billets and GI pipes.[break]
Amid central bank´s loans tightening and poor capital spending, country´s construction sector has undergone a major slowdown. As a result, fabricated metal industry that produces iron rod and billets and GI pipe and occupy the biggest weight (11.71 percent) in MPI declined by 7.89 percent.
The index also portrays a gloomy picture of industries producing other construction materials, except cement industry.
According to CBS, productions of cement industry grew by a massive 13.74 percent during the period. As it occupies 5.28 percent weight in MPI, the growth raised the cumulative index of mineral-based industry by 13.74 percent.
Analysis of sector-wise performances of the index further shows that oil, ghee and fat industry, which occupy the second biggest share in the MPI, recorded a growth of 3.86 percent, thanks to robust growth of 11.48 percent recorded by vegetable ghee industry.
The growth of vegetable ghee production is attributed to rise in domestic demand as well as nominal rise in exports to India and Tibet.
Buoyed by increased productions of paddy and wheat, output of rice and wheat flour mills too grew by hefty 19.36 percent and 11.88 percent respectively. This raised the overall index of grain mills and animal feeds industry, the third largest weight bearer in MPI, by 17.67 percent.
However, industries producing other food products suffered a slump.
MPI has attributed this slump to failure of the biscuits manufacturers to compete with Indian and third country products, something which caused their output to drop by a whopping 52 percent.
“Otherwise, other food manufacturing like chocolate industry performed pretty well, enjoying a growth of 22.40 percent. Output of processed tea too jumped by 23.41 percent and noodles output also went up by over 3 percent during the period,” according to MPI.
Surprisingly, output of soft drinks manufacturers declined by around 27 percent and beer production too dipped by 18 percent during the period. As a result, output of beverage industry declined by 8 percent, even though liquor production jumped by well over 34 percent during the period.
Of the major exportable items, woolen carpet manufacturing witnessed a marginal growth of 0.53 percent, while garment output jumped by around 35 percent, thanks to rising demand in India.
Soap, paint and medicine manufacturers also recorded around 17 percent, 7.5 percent and 5 percent rise in their outputs respectively.
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