>Economy First Cut: Industrial growth drops further to 4.4 per cent in September 2010

• Industrial output growth dropped to 4.4 per cent in September 2010 as compared to 8.2 per cent a year ago and 6.9 per cent a month ago.

• As the index of industrial production (IIP) has been readjusted in view of revamped Wholesale Price Index (WPI) for IIP items, the IIP growth for July and August 2010 now stands 15.0 and 6.9 per cent.

• Manufacturing output growth decelerated to 4.5 per cent in September 2010.

• Among the three major segments of IIP, only manufacturing index posted a positive growth (1.4 per cent) on m-o-m basis.

• Weak m-o-m performance of both mining and electricity in September 2010 led to their growth slowing down to 5.2 and 1.7 per cent respectively

• Capital goods output, continues to be volatile and the same shrank by 4.2 per cent in September 2010. As per the recompiled series, this is the first month in which capital goods have witnessed contraction this fiscal.

• Consumer durable goods, hitherto a consistently good performer also posted a lower growth of 10.9 per cent in September 2010 as against 27.1 per cent in the previous month.

To read the full report: ECONOMY FIRST CUT