Chawla said the demand in consumer non-durables (or the FMCG sector) sector was not picking up because capital goods, used by people for new projects, become “relatively less significant in the scheme of things when there are issues of downturn”.

He admitted that the monsoon is a matter of concern and its absence “will have an impact on various segments”.

Industrywise, nine out of a total of 17 industries registered positive growth, slightly worse than last month when 11 of the 17 groups showed positive growth. The category, “Other Manufacturing Industries,” fared the best growing at 27.3 per cent, followed by “Rubber, Plastic, Petroleum and Coal Products” which grew 16.4 per cent and “Wood and Wood Products; Furniture and Fixtures” which grew at 15.3 per cent in May.

There were, on the other hand, eight industry groups whose production fell over May last year. Output in “Jute and Other Vegetable Fibre Textiles (except cotton)” fell 20 per cent followed by “Food Products” and “Beverages, Tobacco and Related Products,” which fell 14.7 per cent and 10.3 per cent, respectively.