What were the highlights of the IIP announcement on Tuesday?

Here are some of the key highlights of the IIP announcement on 11 August.

· IIP for Jun-20 continued to contract for the fourth month in succession.

· Jun-20 IIP contraction at -16.6% was surely an improvement over April and May.

· Manufacturing IIP showed good momentum although it was still in contraction

· Manufacturing is nearly 77.6% of IIP and hence makes a huge impact.

· In terms of user industries analysis, consumer non-durables showed positive growth

· Infrastructure and capital goods saw deep cuts limiting the multiplier effect

· Mining and Electricity remained in negative growth zone due to supply chain issues

· IIP has been hampered by capacity utilisation at just 68%.