Core sector expands by 7.1% in August

Showing a decisive recovery, six key infrastructure industries grew by 7.1 per cent in August against 2.1 per cent in the same month a year ago.

Cement was on top of the table expanding by 17.6 per cent in August compared to mere 1.9 per cent growth in the same month last year. The other sectors which did well included coal (12.9 per cent) and electricity (9.8 per cent).

The six core sectors -- cement, coal, electricity, steel, crude oil and petroleum refinery products which have a combined weightage of 26.68 per cent in the industrial production -- came out with the best performance this fiscal in August.

These industries registered a growth rate of 2.5 per cent in July, as per the official figures released today.

There was a marked improvement in April-August as well with a growth rate of 4.8 per cent during the period.

However, crude oil remained in the negative zone with a (-) 2.6 per cent decline. Petroleum refinery products output expanded by 3 per cent and finished steel by 3.1 per cent.

With improvement in core sectors, the total factory output is expected to show a further expansion in August. In July the industrial output grew by 6.8 per cent.