Core sector growth slows to 2.1%

Eight core industries grew at a slower pace of 2.1 per cent in August, as against 3.8 per cent in the same month last year due to negative growth in crude oil, natural gas, fertiliser and cement.

During April-August this fiscal, the growth has slowed to 2.8 per cent, from 5.5 per cent in the year ago period, according to official data released on Friday.

"The moderation in growth was on account of the negative growth in the production of natural gas, cement, fertilisers and crude oil, besides a decline in the growth rates of steel and electricity production," it said.

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

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

Steel and electricity production slowed to 1.8 per cent and 1.7 per cent, respectively. In the comparable month, it was 7.9 per cent and 9.4 per cent in that order.

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However, coal and petroleum refinery output grew by 11 per cent and 8.4 per cent in August, against (-) 15.2 per cent and 3.8 per cent respectively.

The eight core sector industries have a weight of 37.9 per cent in the overall Index of Industrial Production.

The growth in core sector industries in May, June and July, too, had moderated to 4 per cent, 3.6 per cent and 1.8 per cent.

In the same months last year, it was 5.9 per cent , 5.6 per cent and 8.2 per cent respectively.