Core sector growth slows to 6.3% in May due to deceleration in output | Economy & Policy News

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Growth in output of eight key infrastructure industries — known as the core sector — slowed to 6.3 per cent in May from 6.7 per cent in April.


It was on the back of a sequential deceleration in the output of six sectors during the month.


According to data released by the ministry of commerce and industry on Friday, output decelerated in sectors like natural gas (7.5 per cent), refinery products (0.5 per cent) and steel (7.6 per cent) during May.


Meanwhile, the output of fertilisers (-1.7 per cent) and cement (-0.8 per cent) further contracted during the month.


The output of crude oil (-1.1 per cent) also contracted during May.


On the other hand, output of coal (10.2 per cent) and electricity (12.8 per cent) accelerated in May.


In May 2023, the core sector had recorded a growth of 5.2 per cent.


The eight core industries account for 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP). Thus, they have a significant impact on the index.


For the first two months of this financial year, growth in the output of core industries stood at 6.5 per cent. 


According to the data by the ministry, the final growth rate of the Index of Eight Core Industries for February 2024 stands at 7.1 per cent.


Index of eight core industries for the month of February 2024


Sector

Coal

Crude Oil

Natural Gas

Refinery Products

Fertilizers

Steel

Cement

Electricity

Overall Growth

May-23

7.2

-1.9

-0.3

2.8

9.7

12

15.9

0.8

5.2

Jun-23

9.8

-0.6

3.5

4.6

3.4

21.3

9.9

4.2

8.4

Jul-23

14.9

2.1

8.9

3.6

3.3

14.9

6.9

8

8.5

Aug-23

17.9

2.1

9.9

9.5

1.8

16.3

19.7

15.3

13.4

Sep-23

16

-0.4

6.6

5.5

4.2

14.8

4.7

9.9

9.4

Oct-23

18.4

1.3

9.9

4.2

5.3

13.6

17

20.3

12.7

Nov-23

10.9

-0.4

7.6

12.4

3.4

9.8

-4.8

5.7

7.9

Dec-23

10.8

-1

6.6

4

5.8

8.3

3.8

1.2

5

Jan-24

10.6

0.7

5.5

-4.3

-0.6

9.2

4

5.7

4.1

Feb-24

11.6

7.9

11.3

2.6

-9.5

9.4

7.8

7.6

7.1

Mar-24*

8.7

2

6.3

1.5

-1.3

6.4

10.6

8.6

6

Apr-24*

7.5

1.6

8.6

3.9

-0.8

8.8

-0.5

10.2

6.7

May-24*

10.2

-1.1

7.5

0.5

-1.7

7.6

-0.8

12.8

6.3


*Provisional

Source: Ministry of Commerce & Industry

First Published: Jun 28 2024 | 5:37 PM IST

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