Core sector growth hits 16-month low at 3.5% in Nov due to oil, fertilisers

Eight core industries grew at their slowest pace in 16 months at 3.5 per cent in November due to a fall in the output of crude oil and fertilisers, official data showed on Monday.  

The previous lowest expansion in output growth of these key industries was recorded at 2.9 per cent in July 2017.

The growth rate of eight infrastructure sectors -- coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity -- was 6.9 per cent in November last year.

Crude oil and fertiliser production recorded negative growth of 3.5 per cent and 8.1 per cent, respectively, as per the government data released on Monday.

The growth rate in the production of natural gas, refinery products, steel, and cement sectors slowed to 0.5 per cent, 2.3 per cent, six per cent, and 8.8 per cent, respectively, in November.  

Slow growth in key sectors would also have implications on the Index of Industrial Production (IIP) number as these segments account for about 41 per cent to the total factory output.

However, growth in coal and electricity output grew by 3.7 per cent and 5.4 per cent, respectively, in November as against 0.7 per cent and 3.9 per cent, respectively, in the same period last year.  

During April-November this financial year, the eight core sectors grew by 5.1 per cent as against 3.9 per cent during the same period last financial year.   

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