September core industries' output jumps 3.2 percent

A lead indicator of the monthly industrial output grew by 3.2 percent in September from an increase of 2.6 percent in August, official data showed on Monday. The select factory output index had risen by 2.6 percent in September, 2014.

The data on the select factory output was furnished by the commerce and industry ministry for the eight core industries (ECI), which comprises 38 percent of the total weightage of items included in the Index of Industrial Production (IIP).

The index's cumulative growth from April to September 2015-16 stood at 2.3 percent, as compared to 5.1 percent during April-September 2014-15.

The acceleration in ECI was attributed to the rise in production of fertilisers, electricity and coal.

Electricity generation, which commands the highest weightage at 10.32 percent in the IIP, rose by 10.8 percent during the month under review, whereas steel production, the second most important component as per weightage, contracted by 2.5 percent.

Distilling of refinery products, the third most important component as per weightage, was marginally higher by 0.5 percent in September.

The crude oil extraction, which has a 5.21 percent weightage in IIP, fell by 0.1 percent during the month under review in comparison to the data for September 2014.

Coal mining, that has a 4.38 percent weightage increased by 1.9 percent. Cement manufacturing, having a weightage of 2.41 percent, was down by 1.5 percent during the last month.

The sub-index for natural gas output, having a weightage of 1.71 percent, grew by 0.9 percent in the month under consideration.

The fertilisers manufacturing which has a weightage of only 1.25 percent rose exponentially by 18.1 percent.