The Index of Industrial Production (IIP) for November saw an increase of 1.3% year-on-year, with 12 out of 20 industry groups showing positive growth, the Census and Statistics Department said this week.
The IIP index of industrial production has increased by 1.3% in November 2019 compared to the same month in 2018. IIP reported for November 2019 and 2018 were 108.8 and 107.4 respectively, the statement said.
The IIP is an index which details the growth of subsectors of the industry segment in a given period of time. It reveals short-term changes of volume of production of the industrial sector. The Department of Census and Statistics compiles a number of economic indicators including IIP.
The Government as well as industries use these indicators to understand the trends and patterns in the Sri Lankan economy, identify the drivers of economic growth, evaluate economic performance and formulate and assess economic policies.
In terms of manufacturing industries, 12 out of 20 industry groups have shown positive growth in volume of production. The industry groups of ‘Manufacture of wood and products of wood’, ‘Manufacture of paper and paper products’ and ‘Manufacture of chemicals and chemical products’ have shown a remarkable increase of 38.6%, 29.4%, and 25% respectively in their volume of production during November 2019 compared to that of November 2018. The volume of food products has increased by 2.8% compared to November 2018.
Among the eight industries that recorded negative growth in volume of production of manufacturing industries, ‘Tobacco products’, ‘Other manufacturing’ (which includes manufacturing motor vehicles, trailers and semi-trailers, other transport equipment, jewellery) and ‘Manufacture of rubber and plastic products’ reported negative growth rates of 24.5%, 20.9% and 15.2% respectively.
(FT)