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April core sector growth slows to three-month low of 2.5%

Contraction in coal, crude oil and cement output are reasons behind it

Press Trust of India 

April core sector growth slows to three-month low of 2.5%

The growth of eight core sectors declined to 2.5 per cent in April, mainly due to lower coal, and cement production.

The growth rate of eight infrastructure sectors — coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity – was 8.7 per cent in April last year.

According to government data released on Wednesday, coal, and cement production recorded negative growth of 3.8 per cent, 0.6 per cent and 3.7 per cent, respectively.

Slow growth in key sectors would also have implications on the Index of Industrial Production (IIP), as these segments account for about 38 per cent to the total factory output.

Growth in refinery products and electricity output slowed down by 0.2 per cent and 4.7 per cent in April, against 19.1 per cent and 14.5 per cent, respectively, in the same period last year. 

However, natural gas, fertiliser and steel reported positive growth at two per cent, 6.2 per cent and 9.3 per cent, respectively.

First Published: Thu, June 01 2017. 02:23 IST