Growth of eight core sectors slows to 2.6% in August

New Delhi: The growth of eight core sectors slowed down to 2.6% in August mainly due to contraction in steel output.

The expansion in eight infrastructure sectors, which contribute about 38% to the overall industrial production, was 5.9% in the same month last year.

The August output, however, was higher than the previous month when the core sectors had expanded by just 1.1%.

According to the data released by the Commerce and Industry Ministry on Wednesday, the steel output in the month under review declined to 5.9% as against a positive growth of 9.4% in August 2014.

Coal, cement and electricity output slowed down to 0.4%, 5.4% and 5.6% respectively during the last month as compared to 13.2%, 10% and 12.9%.

However crude oil, natural gas, refinery products and fertilisers recorded healthy growth.

In March and April this year, the eight industries witnessed contraction of 0.1% and 0.4% respectively. However, in May and June the core sectors expanded by 4.4% and 3% respectively.

During the April-August period of the current fiscal, the core sectors’ output expanded by 2.2% as against 5.6% in the first five months of 2014-15.

The overall growth of eight core industries in the entire 2014-15 fiscal stood at 3.5% as against 4.2% in the previous fiscal.