Core sector growth at one-year low of 3.5% in November

Crude oil, cement and fertilizer sector output growth pulled the eight core sector growth to a one-year low of 3.5 percent in November from 4.8 percent in September.

Core sector growth was 6.9 percent in November, 2017.

Cumulative growth of the eight sectors—coal, steel, natural gas, cement, crude oil, fertilisers, refinery products and electricity during April to November was 5.1 percent, data released by commerce ministry showed.

Tepid growth in eight core industries comprises 40.27 percent of the weight of items included in the Index of Industrial Production (IIP) or factory output, which increases the chances of low factory output for November that will be released next month.

Cement output, which has 5.3 percent weightage slowed to 8.8 percent in November from 18.4 percent a month ago, mainly due to the unfavourable base effect.

Crude oil continued to decline and witnessed a de-growth of 3.5 percent in November from (-) 5 percent in November, while fertiliser fell (-)8.1 percent from (-) 11.5 percent a month ago.

Similarly, electricity growth slowed to 5.4 percent from 10.9 percent in October.

Steel, which has a weightage of nearly 18 percent, grew 6 percent in November from 2.6 percent a month ago, while refinery products, with a weightage of more than a fifth in the index, grew 2.3 percent from 1.3 percent in October.

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