economy

Core sector output expands at slowest pace since March

Core sector output expands at slowest pace since March

The output of eight core industries grew at the slowest pace in eight months in November, official data released on Friday showed, indicating slowing momentum in the Indian economy. In November, core sector output expanded at 3.1%, sharply slower than the previous month’s 8.4%, as most sectors slowed, and cement and crude oil production contracted. In November 2020, core sector growth shrank 1.1% as the economy was still recovering from the pandemic lockdowns. “The combined index of eight core industries stood at 131.7 in November 2021, which increased by 3.1% (provisional) as compared to the index of November 2020. The production of coal, natural gas, refinery products, fertilizers, steel and electricity industries increased in November 2021 over the corresponding period of last year, the Department for Promotion of Industry and Internal Trade said in a statement. The growth rate during April-November was 13.7% from a year earlier, it said, noting that final growth for August has been revised to 12.2% from the provisional 11.6%. The output of eight core industries grew at the slowest pace in eight months in November, official data released on Friday showed, indicating slowing momentum in the Indian economy. In November, core sector output expanded at 3.1%, sharply slower than the previous month’s 8.4%, as most sectors slowed, and cement and crude oil production contracted. In November 2020, core sector growth shrank 1.1% as the economy was still recovering from the pandemic lockdowns. “The combined index of eight core industries stood at 131.7 in November 2021, which increased by 3.1% (provisional) as compared to the index of November 2020. The production of coal, natural gas, refinery products, fertilizers, steel and electricity industries increased in November 2021 over the corresponding period of last year, the Department for Promotion of Industry and Internal Trade said in a statement. The growth rate during April-November was 13.7% from a year earlier, it said, noting that final growth for August has been revised to 12.2% from the provisional 11.6%. |#+| Eight core industries—coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity—comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP). According to experts, Friday’s data provides further evidence that economic momentum slackened after the festive season amid supply disruptions in parts of south India related to heavy rainfall. The slowing core sector growth might reflect in November’s Index of Industrial Production as well. “With the considerable moderation in the core sector growth and the sequential decline in the GST e-way bills, we expect the Index of Industrial Production growth to flatten to under 2.5% in November 2021, in spite of the low base (-1.6% in November 2020), said Aditi Nayar, chief economist at ICRA Ltd. She added that the sharpest monthly decline of 21% was seen in cement, while steel output declined by a relatively muted 5%. Output figures of cement, crude oil and refinery products were even lower than in November 2019. The government said that the production of coal, natural gas, refinery products, fertilizers, steel and electricity industries increased in November from a year earlier. Coal production rose by 8.2% from November 2020, with the cumulative index increasing 11.6% in April-November from a year earlier. On the other hand, cement production decreased by 3.2% from November 2020, although the cumulative index increased by 28.3% in the April-November period. Crude oil production declined by 2.2% from a year ago, while its cumulative index declined by 2.7% in the April-November period. Natural gas production also increased by 23.7%, while its cumulative index increased by 22.8% in the eight months to November. Petroleum refinery production also increased by 4.3%, and its cumulative index rose by 10.6% in the same comparison periods. Fertilizer production increased by 2.5% from the previous year, while its cumulative index decreased by 0.6% in April-November. Steel production increased by 0.8%, and the cumulative index increased by 25.3% in the eight months to November. Electricity generation increased by 1.5% in November on-year, while its cumulative index increased by 10.2% in April- November. Download.

economy 2022-01-02 Livemint