Eight core sectors growth slumps to 3.6% in May

The growth of eight core sectors slowed to 3.6% in May due to fall in output of coal, fertiliser and steel.

The growth rate of eight infrastructure sectors — coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity — was 5.2 % in May last year. Coal and fertiliser productions recorded negative growth of 3.3 % and 6.5 %, respectively, as per the government data released today. Steel output dipped to 3.7 % last month as against 13.4 % in May 2016.

Slow growth in key sectors would also have implications on the Index of Industrial Production (IIP) number as these segments account for about 41 % to the total factory output. However, growth in refinery products and electricity output grew by 5.4 % and 6.4 % in May as against 3.3 % and 6.2 %, respectively in the same period last year. Natural gas production too grew by 4.5 % in May as against a negative growth rate of 6.5 % a year earlier. In April, these eight sectors had recorded a growth rate of 2.8 %.