Core Sector Growth Slows to 1.8% in January

Decline in output of crude oil, refinery products and electricity pulled down the growth of eight core sectors to 1.8 % in January. The eight infrastructure sectors—coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity—had expanded 6.2% in January 2018 and 2.7% in December.

The core sector has nearly 41% weight in the index of industrial production, suggesting a moderation in the industrial growth in January.

The core sector grew 4.5% between April 2018 and January 2019, compared with 4.1% in the same period of the previous fiscal.

Production of crude oil, refinery products and electricity contracted 4.3%, 2.6% and 0.4%, respectively, in January.

Coal and cement output slowed 1.7% and 11% in January as against 3.8% and 19.6% in January 2018, respectively.

However, natural gas, fertilisers and steel output grew 6.2%, 10.5% and 8.2 % respectively in January. As per Sabnavis, higher fertiliser growth has come over a negative base effect last year. This can be attributed more to restocking to an extent as the main demand season for sowing is over.

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