Worrying sign: Core industries shrink most since April 2005

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Updated: November 1, 2019 5:13:48 AM

While floods in key states were partly to blame, the slide just reinforced fears of a bumpy and long road to industrial recovery amid a supply-side contraction following demand compression. 

coal, coal sectorThe fall was fuelled by seven of the eight industries, mainly coal. (PTI)

The output of eight core industries contracted 5.2% in September, a level of decline never witnessed at least since April 2005, showed the data spanning both the 2004-05 and 2011-12 series. The fall was fuelled by seven of the eight industries, mainly coal (output of Coal India hit a six-year low in September). While floods in key states were partly to blame, the slide just reinforced fears of a bumpy and long road to industrial recovery amid a supply-side contraction following demand compression.

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