Core sector growth hits 6-month high

Core sector growth hits 6-month high

Core sector growth hits 6-month high

Eight core sectors grew to a six-month high of 5.2% in September, helped by a robust performance in coal, natural gas and refinery segments, official data showed on Tuesday.

The eight infrastructure sectors -- coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity -- had witnessed a growth of 5.3% in September last year.

The expansion in September is highest since April, when the core sectors' growth stood at 2.6%.

The production of coal, natural gas and refinery products rose by 10.6%, 6.3% and 8.1%, respectively on annual basis, according to the data released by the commerce and industry ministry.

Crude oil output registered a growth of 0.1% during the month under review as compared to a contraction of 4.1% in September 2016.

On the other hand, growth rate of steel and cement production was slower in September this year as against the same month previous fiscal. Electricity generation recorded almost flat growth.

Cumulative growth

However, fertiliser output recorded a degrowth during the month under review.

Cumulatively, the growth in the eight core sectors during April-September this fiscal slowed down to 3.3% against 5.4% in the same period last fiscal.

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