Core sector growth slips to 3.6% in May

Core sector growth slips to 3.6% in May
The growth of eight core sectors slowed to 3.6% in May due to fall in output of coal and fertilisers.

The growth rate of eight infrastructure sectors — coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity — was 5.2% in May last year.

Coal and fertiliser productions recorded negative growth of 3.3% and 6.5%, respectively, as per the government data released on Friday.

Steel sector growth dipped to 3.7% last month against 13.4% in May 2016.

Slow growth in key sectors would also have implications on the Index of Industrial Production (IIP) number as these segments account for about 41% to the total factory output.

However, growth in refinery products and electricity output grew by 5.4% and 6.4% in May against 3.3% and 6.2%, respectively in the same period last year. Natural gas production too grew by 4.5% in May against a negative growth rate of 6.5% a year earlier.

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