Core sector growth slows down to 3.4% in January

This, because of a fall in refinery production and a deeper contraction in cement output

The growth of eight core sectors slowed down to a five-month low of 3.4% in January, mainly due to contraction in output of refinery products, fertiliser and cement.

The growth rate of eight infrastructure sectors of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity was 5.7% in January 2016.

Infrastructure sectors’ expansion in January this year is the lowest since August 2016, when the segments had recorded a growth of 3.2%. It is also lower than that of 5.6% seen in December 2016.

The core sectors, which contribute 38% to the total industrial production, expanded 4.8% in April-January this financial year, compared to 2.9% growth in the same period the previous financial year, according to data released by the commerce and industry ministry on Tuesday.

The output of refinery products, fertiliser and cement contracted by 1.5%, 1.6% and 13.3%, respectively, during the month under review.

Both coal and electricity expanded at 4.8% in January, against 7.9% and 11.6% expansion, respectively, in January 2016.

However, crude oil, natural gas and steel output reported positive growth.

Crude oil output grew by 1.3% in January 2017, against 4.7% contraction in the same month of previous year.

Similarly, natural gas and steel output rose by 11.9% and 11.4%, respectively, during the month under review.