Core sector output expands by 12.7% in June

The output of eight core infrastructure sectors expanded by 12.7 per cent in June against 9.4 per cent in the year-ago period, according to official data released on Friday.

The production growth of eight infrastructure sectors -- coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity -- was 19.3 per cent in May 2022, the data showed.

In June,  the output of coal, refinery products, fertiliser, cement and electricity rose by 31.1 per cent, 15.1 per cent, 8.2 per cent, 19.4 per cent, and 15.5 per cent, respectively.

Crude oil production contracted by 1.7 per cent.

Growth rate in the output of natural gas and steel slowed down to 1.2 per cent and 3.3 per cent during the month under review.

Cumulatively, during April-June 2022-23, the output of the eight sectors rose by 13.7 per cent, lower than 26 per cent during April-June 2021-22.

Commenting on numbers, Icra chief economist Aditi Nayar said that coal, cement, refinery products and electricity generation demonstrated double digit growth in June, whereas the rise in steel and natural gas was quite muted.

"In line with the moderation in the year on year performance recorded by most high frequency indicators as well as the core sector in June 2022, we expect the IIP (Index of industrial production) growth to ease to ~11-13 per cent  in that month," she said.

The eight core industries accounts for 40.27 per cent of the IIP.