Millennium Post

Sept core industries’ growth slows to 8-month low of 1.9%

Sept core industries’ growth slows to 8-month low of 1.9%
Growth of the eight core industries in September plummeted to 1.9 per cent, the slowest pace in eight months, against 9 per cent in the same month last year due to fall in output of crude oil, natural gas, refinery products and fertiliser.

Crude oil, natural gas, refinery products and fertiliser output have registered a drop of 1.1 per cent, 6.2 per cent, 2.5 per cent and 11.6 per cent respectively in the month under review, according to the data released by Commerce and Industry Ministry.

Expansion in other four sectors— coal, cement, steel and electricity — too slowed down to 7.2 per cent, 3.2 per cent, 4 per cent and 3.8 per cent respectively in September this year against 13.6 per cent, 12.1 per cent, 10.7 per cent and 12.9 per cent rise in September 2013 respectively. In January 2014, the eight core industry index registered an overall growth of 1.6 per cent.

During April-September, the eight sectors grew by 4 per cent, against 5 per cent in the year-ago period.

The September figures would have impact on overall industrial production as the eight core sectors have a combined weight of about 38 per cent in the Index of Industrial Production (IIP). ICRA economist Aditi Nayar attributed the slowdown in the pace of growth, month-on-month, to a high base as well as the fact that growth in electricity generation (the biggest contributor to the index)
had come off (it grew over 10 percent in August).



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