Industrial growth pulled down to 10-month low of 1.5% in June

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 The manufacturing sector grew at a 5-month high of 3.9% in June 2025, up from 3.2% in May and 3.5% in June of last year. Representational file image.

 The manufacturing sector grew at a 5-month high of 3.9% in June 2025, up from 3.2% in May and 3.5% in June of last year. Representational file image.
| Photo Credit: Reuters

Growth in industrial activity slowed to a 10-month low of 1.5% in June 2025, down from 1.9% in May. This slowdown was driven by the mining sector, which saw its worst performance in 58 months, and also by contractions in the electricity and primary goods sectors. 

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Data on the Index of Industrial Production (IIP), released by the Ministry of Commerce and Industry, showed the index last witnessed worse growth numbers in August 2024. 

The mining and quarrying sector contracted 8.7% in June 2025, its worst performance since August 2020. The electricity sector contracted 2.6% in June 2025, a smaller contraction than in May 2025 (-4.7%), but a significantly worse performance than the 8.3% growth in June 2024. 

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 The manufacturing sector, on the other hand, grew at a 5-month high of 3.9% in June 2025, up from 3.2% in May and 3.5% in June of last year.

The primary goods sector contracted 3% in June 2025, its worst performance in 56 months. Intermediate and infrastructure and construction goods grew at 5.5% and 7.2%, respectively. This was the highest in six months and three months, respectively.



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