Core sector growth slows to 6.3% in May due to slowdown in production
Output growth from eight key infrastructure industries – known as the core sector – slowed to 6.3 percent (year on year) in May from 6.7 percent in April, reflecting a successive slowdown in output from six sectors during the crisis. the month.
According to data released by the Ministry of Trade and Industry on Friday, output in sectors such as natural gas (7.5 percent), refinery products (0.5 percent) and steel (7.6 percent) slowed in May. Meanwhile, output of fertilizers (-1.7 percent) and cement (-0.8 percent) fell further in the month.
Crude oil production (-1.1 percent) also shrank during the month.
On the other hand, coal (10.2 percent) and electricity (12.8 percent) production accelerated in May.
As of May 2023, the core sector had registered a growth of 5.2 percent.
The eight core sectors account for 40.27 percent of the weighting of the items in the Industrial Production Index (IIP) and thus have a significant impact on the index.
In the first two months of this budget year, output growth in the core sectors was 6.5 percent.
According to the ministry’s data, the final growth rate of the Index of Eight Core Industries for the month of February 2024 is 7.1 percent.
First print: June 28, 2024 | 5:37 PM IST