Core sector growth in August falls to 2.1 percent

Core sector growth in August falls to 2.1 percent

The output of eight core industries grew 2.1 percent in August, compared to the 3.8 per cent growth during the same month in the previous year, official data released Friday showed.

The cumulative expansion of these industries in April-August 2012 slowed to 2.8 percent from 5.5 percent in the corresponding period last year.

The slowdown has been mainly due to declining output of the crude oil, fertilisers and cement sectors.

"The moderation in growth was on account of the negative growth in the production of natural gas, cement, fertilizers and crude oil, besides a decline in the growth rates of steel and electricity production," a commerce and industry ministry statement said.

The eight core industries, that include crude oil, petroleum refinery products, coal, electricity and cement, have a combined weightage of 37.9 percent in the index of industrial production (IIP).

Natural gas and crude oil production contracted by (-)13.5 percent and (-)0.6 percent, respectively in August.

Fertiliser and cement output also shrunk by (-)2.1 percent and (-)2.4 percent during the month under review.

Fertiliser and cement output also shrunk by (-)2.1 percent and (-)2.4 percent during the month under review.

Steel and electricity production slowed to 1.8 percent and 1.7 percent, respectively, whereas in the same month last year it was 7.9 percent and 9.4 per cent, respectively

Instead, coal and petroleum refinery output grew by 11 percent and 8.4 percent in August, as against (-)15.2 percent and 3.8 percent, respectively.

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