Core sector grows 4.5% in February, at fastest pace since Sept

Showing some signs of recovery, the output of eight core sectors grew 4.5 per cent in February, the fastest pace in five months, on improved production of electricity, coal and crude oil.
The Index of Eight Core Industries had expanded 1.6 per cent in January and 1.3 per cent in February 2013.
The eight core industries -- fertilisers, cement, steel, electricity, crude oil, coal, petroleum refinery products and natural gas -- have a combined weight of about 38 per cent in the Index of Industrial Production (IIP).
Core sector growth was the fastest since an 8 per cent expansion in September and could have a positive impact on IIP numbers for February, which are expected on April 12.

However, for the April-February period of this financial year, core sector growth slowed to 2.6 per cent compared with 6.4 per cent in the same period of 2012-13.
Electricity generation surged 10.4 per cent in February compared with a decline of 3.7 per cent a year earlier.

Growth in output of coal and crude oil recovered to 0.1 per cent and 1.9 per cent, respectively, compared with -6.1 per cent and -4 per cent.
Steel production increased by 4.8 per cent compared with 4.7 per cent a year ago, while the expansion in cement production slowed to 2.3 per cent. Natural gas registered a negative growth of 4.4 per cent and production of refinery products expanded 3.2 per cent.

Showing a ray of hope, industrial output entered positive territory and recorded 0.1 per cent growth in January after contracting for three months in a row.