New Delhi: Industrial production growth rate slowed to just 0.1 percent in July due to poor show by manufacturing, mining and capital goods sectors, reflecting weak economic activity which may prompt RBI to cut interest rate in its mid-quarter policy review on Monday.

Industrial output in the April-July period of this fiscal has thus contracted by 0.1 percent, according to the official data released on Wednesday.

Growth in factory output, as measured by the index of industrial production (IIP), was 3.7 percent in July last year, and 6.1 percent in the April-July period in 2011-12.

The manufacturing sector, which constitutes over 75 percent of the index, witnessed a contraction in output by 0.2 percent in July, as against growth of 3.1 percent in the same month last year.

The performance of the manufacturing sector in April-July was poor as output contracted by 0.6 percent, as against a growth of 6.5 percent in the four-month period of last year.

The capital goods production also down by 5 percent in July against a contraction of 13.7 percent in the same month a year ago. The output of capital goods contracted in April-July period by 16.8 percent, as against a growth of 8.2 percent in 2011-12.

Mining output in July dipped by 0.7 percent, as against a growth of 0.7 percent in the same month a year ago.

The sector's production in April-July quarter declined by 0.9 percent, compared to a growth of 0.6 percent in 2011-12.

Consumer goods production was up 0.7 percent in July as compared to 6.4 per cent growth in the same month last year.

During the April-July period of this fiscal, the growth in the segment was 3.3 percent, compared to 4.9 percent in the four month period a year ago.

(Agencies)

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