Eight core sectors growth slips to 2.4% in July

 The growth of eight core sectors slowed to 2.4% in July due to contraction in output of crude oil, refinery products, fertiliser and cement.

These eight infrastructure sectors -- coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity -- had witnessed a 3.1% growth in July last year. The production of crude oil declined by 0.5%, refinery products by 2.7%, fertiliser by 0.3% and cement by 2%, as per official data. Coal output growth decelerated to 0.7% last month as against 4.1% in July 2016.
According to data, natural gas output rose by 6.6% in July.

Steel production and power generation rose to 9.2% and 5.4%, respectively in July this year from zero% and 2.1% in the same month last year. Cumulatively, the eight core sectors in April-July recorded a growth of 2.5% as against 6% in the same period a year ago. Slow growth in key sectors would also have implications on the Index of Industrial Production (IIP) as these segments account for about 41% to the total factory output. In June, these eight sectors had recorded a growth rate of 0.8%.