New Delhi: Output of eight core infrastructure industries contracted for the second month in a row by 5.8 percent in October, the lowest in over a decade, indicating the severity of economic slowdown.
As many as six of eight core industries -- coal, crude oil, natural gas, cement, steel and electricity -- saw a contraction in output in October.
#BreakingNews | Eight core industries growth at -5.8% Vs -5.2% (MoM). April-October growth at 0.2% Vs 5.4% (YoY)#CoreSector #Data #macros #macroeconomics #growth #industries pic.twitter.com/AIdBzfyEZv
— CNBC-TV18 (@CNBCTV18Live) November 29, 2019
Coal production fell steeply by 17.6 percent, crude oil by 5.1 percent, and natural gas by 5.7 percent, according to the data released by the government on Friday.
Production of cement (- 7.7 percent), steel (- 1.6 percent), and electricity (- 12.4 percent) also declined during the month.
The only sector that posted growth in October was fertilisers where production increased by 11.8 percent year-on-year.
Growth in output of refinery products slowed down to 0.4 percent in October as against 1.3 percent in the same period last year.
The eight-core sectors had expanded by 4.8 percent in October 2018.
During the April-October period, the growth of core industries fell to 0.2 percent against 5.4 percent in the year-ago period.
The output of these sectors had contracted by 5.1 percent in September, the lowest in the decade.
Commenting on the data, ICRA Ltd said based on the unfavourable performance of the core sector, the contraction in the IIP appears set to deepen in October 2019.
"The sharp worsening in the performance of electricity generation and cement in October 2019, offset the sequential improvements in refinery production, fertilisers and coal, resulting in an even deeper contraction of the core sector output in that month," it said in a statement.
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Updated Date: Nov 29, 2019 20:44:30 IST