The output of eight core industries in September contracted to a low of (-) 5.2 per cent, due to a decline in output of coal, crude oil, natural gas, cement, and electricity, according to government data released on Thursday. The core sector growth recorded negative growth of 5.2 per cent from 0.5 per cent in August, it added. Production of seven sectors of coal, crude oil, natural gas, refinery products, cement, steel, and electricity contracted in September. The infrastructure output, which comprises eight sectors such as coal, crude oil and electricity, accounts for nearly 40 per cent of the industrial output. August’s eight core industries’ growth has been revised to 0.1 per cent from -0.5 per cent earlier. While coal sector growth fell in negative to 20.5 per cent compared to (-) 8.6 per cent, crude oil output growth for September remained unchanged at (-) 5.4 per cent (month-on-month).
The September natural gas output growth dropped to (-) 4.9 per cent as against (-) 3.9 per cent. The refinery product growth was recorded at (-) 6.7 percent compared to 2.6 per cent, fertilisers output growth was seen at 5.4 per cent compared to 2.9 per cent. The steel output growth was recorded at (-) 0.3 per cent as against 5 per cent and the cement output growth reached (-) 2.1 per cent versus (-) 4.9 per cent. The electricity output growth for the month of September was seen at (-) 3.7 per cent as against (-) 2.9 per cent (month-on-month).
During the April-September period, the growth of core industries fell to 1.3 per cent against 5.5 per cent in the year-ago period. “The YoY decline in the output of coal, crude oil and natural gas, is likely to weigh upon the performance of the mining index of the IIP in September 2019. Moreover, manufacturing may report a YoY contraction in September 2019,” Aditi Nayar, Principal Economist, ICRA said.