Core sector growth slows to 4.6% in May

Reflecting slowdown in the economy, the growth rate of eight infrastructure sectors slowed to 4.6% in May due to poor performance of crude oil, natural gas and fertiliser.

Reflecting slowdown in the economy, the growth rate of eight infrastructure sectors slowed to 4.6% in May due to poor performance of crude oil, natural gas and fertiliser.

The core industries that also include coal, electricity, cement, petroleum refinery products and finished steel, and carry 37.9% weight in the Index of Industrial Production (IIP), had grown by 5.8% in May last year.

The cumulative growth rate of infrastructure industries during April-May 2012 also slowed down to 4.2%, from 5% in the same period last year, according to the data released by the ministry of commerce and industry on Friday.

Natural gas and fertiliser output contracted by 10.8% and 15.1% respectively during May.

Petroleum refinery products and crude oil production slowed down to 2.9% and 0.5%, from 4.5% and 9.8% respectively during May 2011.

Steel and electricity production too declined to 4.9% and 5.2% in May, from 8% and 10.3% in May 2011 respectively.

However, cement and coal production grew 22.1% and 8% during the month under review, over May last year.