According to Manufacturing Production Index (MPI) released by Central Bureau of Statistics, production of iron rods and galvanized pipes that carries the largest weight of 11.71 percent in Nepal´s MPI, demonstrated a strong growth of almost 8 percent mainly due to strong performances of construction industry. [break]
Other construction inputs like cement, bricks and concrete also witnessed an encouraging growth during the period. The production of cement increased by almost 10 percent, while production of bricks and concrete went up by 3 percent and 5 percent respectively.
Demand for construction inputs was strong till the end of the third quarter because of construction boom, Pradeep Kumar Shrestha, managing director of Panchakanya Group, told myrepublica.com. “However, the demand has started dwindling lately as a result of ongoing credit crunch,” Shrestha added.
Likewise, the production of agricultural products like rice, wheat flour and animal feed recorded an increment of 4.29 percent during the period. Production of rice, which alone commands 7.8 percent weight in MPI, grew by 4.3 percent.
As a result of recent efforts of the government and the private sector, the production of milk in the country increased by 8.5 percent -- one of the strongest growths in recent years.
Among beverage products, production of rectified alcohol increased by almost 8 percent. However, manufacturing of beer, a popular drink in Nepal, recorded a slower growth of 1.62 percent. The growth in production of soft drink remained almost at nil. Similarly, production of cigarette also recorded a slow growth of 1.71 percent.
During the period, production of Nepal´s two major export pillars -- carpet and garment -- remained pessimistic. The production of woolen carpet increased by 0.8 percent but the production of garment products dwindled further by almost 2 percent, according to MPI.
Among all the industrial products, manufacturing of plastic products that commands 5.74 percent weight in the MPI showed the strongest growth of almost 10 percent.
Manufacturing of furniture declined by 2.3 percent during the period, which was an improvement compared to the performances in the first and the second quarters.
Related story
Oil dips as U.S. crude production hits record, Asia factory out...
