Mining and electricity The increase in industrial production of the country due to the weak performance of the areas stood sluggish in June this year to a 10 -month low of 1.5 percent. This information was given in the official data released on Monday. In June, excessive rains have affected mining and power sector activities, which has affected the increase of industrial production. Industrial production measured as the Industrial Production Index (IIP) increased at the rate of 4.9 percent in June last year. The National Statistics Office (NSO) has also revised the May industrial production growth rate of May to 1.9 percent, while it was earlier estimated to be 1.2 percent. Industrial production growth is the lowest after August 2024. At that time its growth was stable.
Power generation will also decrease
Ekra’s chief economist Aditi Nair said in a statement that excessive rains in the late June 2025 are expected to affect mining production. There will also be a decrease in power generation. However, the situation has improved for both regions compared to the previous month. According to NSO data, the production growth in manufacturing sector increased marginally to 3.9 percent in June 2025, which was 3.5 percent in the same month a year ago. Mining production declined by 8.7 percent, while it recorded a 10.3 percent increase a year ago. Power generation declined by 2.6 percent in June 2025, while it increased by 8.6 percent in the same month a year ago. During the April-June period of FY 2025-26, the increase in industrial production was reduced to two percent, compared to 5.4 percent in the same period a year ago. In the manufacturing sector, 15 out of 23 industry groups recorded a positive growth on an annual basis in June 2025. According to the use-based classification, the growth rate in capital goods segment declined to 3.5 percent in June 2025, which was 3.6 percent in the same period a year ago.
Sleake in infrastructure
The growth rate of consumer durable items (or production of white items) declined to 2.9 percent in the month under review, compared to 8.8 percent in June 2024. Production of non-tricky consumer goods declined by 0.4 percent in June 2025, while it declined by one percent a year ago. The infrastructure/construction sector increased by 7.2 percent in June 2025, which is less than an increase of 8.2 percent in the same month a year ago. According to the data, the production of primary items declined by three percent in June 2025, while it increased by 6.3 percent a year ago. The growth rate in intermediate goods case was 5.5 percent in the month, while it was 3.2 percent in the same month a year ago.
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