Core sector output shrinks by 9.6% in July

The production of cement and refinery products shrank more in July than in June, indicating sluggish demand.

Output of key infrastructure industries reported a contraction in July compared to the year-ago period but the extent of output decline showed an improvement from the level seen in June, indicating this segment of economy is on a recovery path.

Fertiliser production continued to grow for the third straight month, as the farm sector was relatively unaffected by curbs. (mint)

Data released by the economic adviser in the commerce ministry showed that the combined index of eight core industries contracted by 9.6% in July from a year ago.

Core sector output, which contracted by a sharp 37.9% in April as the country went into a stringent national lockdown, moderated the contraction to 22% in May and 12.9% in June.

Barring fertiliser production, which continued to grow for the third straight month in July, output of all other sectors covered by the index contracted in July. Farm sector had remained relatively unaffected by the national lockdown.

While production of coal, crude oil, natural gas, steel and electricity continued to contract in July, the extent of contraction lessened from that of the previous month.

However, the production of cement and refinery products shrank more in July than in June, signalling the sluggish demand for energy and construction material.