Eight Core Industries Clock Slower Growth in July

India's infrastructure sector growth moderated in July from the month before, marking a slow start to the second quarter of the fiscal after a moderate first quarter.
The core sector index, which measures output of eight infrastructure sectors, was up 3.2% in July compared with a 5.2% rise in June.
These sectors have a 38% weight in the Index of Industrial Production (IIP), suggesting a weaker industrial growth in July. The IIP numbers for July will be released on September 12.
The economy grew 7.1% in the first quarter ended June, down from 7.9% growth in fourth quarter of FY16.
However, the fiscal so far has been better than last year. April-July core sector growth is at 4.9% compared with 2.2% at same point last year. The slowdown in July was due to a broad-based moderation except for refinery output that rose at 13.7%. Coal output growth fell to 5.1% from 12% in June while cement production rose only 1.4% in July compared with 10.3% rise in June, both impacted by the monsoon rains.
Crude oil and steel production declined in July by 1.8% and 0.5%, respectively.Natural gas production increased after four months of decline and was up 3.3% in the month. Electricity generation rose 1.6%, its slowest in eight months.

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