Core sector growth at 4-month high of 3.1 pc in July

Reflecting a moderate growth, the eight core infrastructure industries grew by 3.1 per cent in July, the highest in the last four months, a development which experts say cannot be dubbed as a turnaround.
The core industries grew moderately mainly due to declining output of crude oil and natural gas.
The infrastructure sectors had seen a dismal growth rate of just 0.1 per cent in June, while in April and May the expansion rate was 2.3 per cent.
The growth rate in July this year, however, is lower than 4.5 per cent in the same month last year.
Crude oil and natural gas production contracted by 2.3 per cent and 16.1 per cent respectively in July, according to the official data released today.

The eight infrastructure industries have a weight of about 38 per cent in the overall industrial production.

Experts said though the growth rate in July is higher than the previous month, the sectors are still not recovering.
"No this is not a sign of revival. If the similar trend will continue for another 2-3 months then we can say ... The figures are fluctuating," CRISIL Principal Economist D K Joshi said.
Petroleum refinery production expanded by 5.1 per cent in the month against 26 per cent in July 2012. Steel production grew by 7 per cent, while cement output was up by 0.8 per cent in July this year.

Coal and electricity production slowed down by 1.2 per cent and 5.2 per cent as against 2 per cent and 2.7 per cent respectively in July 2012.
Fertiliser output grew by 0.4 per cent in July.
During April-July period, the growth of eight infrastructure industries slowed to 1.9 per cent from 6.3 per cent in the same period last year.
The growth was 3.9 per cent in 2012-13 as against 5 per cent in the previous financial year.