Manufacturing and consumer durables growth see a slow down in momentum

Growth story intact; Manufacturing and consumer durables growth see a slow down in momentum
Index of Industrial Production (IIP) for May 2010 stood at 11.5%, compared to 2.1% for the same period last year.
IIP growth for April FY11 has been revised to 16.5% yoy from 17.6%.
Sectorally, manufacturing pulled down IIP growth, with 12.3% yoy as against 17.9% for the month of April last month.
On use-based classification, capital goods growth shrunk to 34.3% yoy from 69.9% in the previous month and durable consumer goods to 23.7% from 32.8% yoy.
Machinery & equipment growth fell to 24.8% yoy from 54.4% the previous month and Transport equipment growth dropped to 25.2% from 33.2% yoy.
The mom negative growth for the month of May after 14 years shows a clear slowdown in momentum, as industrial production rolls back to more sustainable growth rates.