Core sector growth at 4-month high of 3.1% in July
New Delhi: Reflecting a moderate growth, the eight core infrastructure industries grew by 3.1 percent in July, the highest in the last four months, a development which experts say cannot be dubbed as a turnaround.
The core industries grew moderately mainly due to declining output of crude oil and natural gas.
The infrastructure sectors had seen a dismal growth rate of just 0.1 percent in June, while in April and May the expansion rate was 2.3 percent.
The growth rate in July this year, however, is lower than 4.5 percent in the same month last year.
Crude oil and natural gas production contracted by 2.3 percent and 16.1 percent respectively in July, according to the official data released today.
The eight infrastructure industries have a weight of about 38 percent in the overall industrial production.
Experts said though the growth rate in July is higher than the previous month, the sectors are still not recovering.
"No this is not a sign of revival. If the similar trend will continue for another 2-3 months then we can say ... The figures are fluctuating," CRISIL Principal Economist D K Joshi said.
Petroleum refinery production expanded by 5.1 percent in the month against 26 percent in July 2012. Steel production grew by 7 percent, while cement output was up by 0.8 percent in July this year.
While the coal output decelerated to 1.2 percent in July from 2 percent in the same month last year, the electricity generation improved to 5.2 percent from 2.7 percent in July, 2012.
Fertiliser output grew by 0.4 percent in July.
During April-July period, the growth of eight infrastructure industries slowed to 1.9 percent from 6.3 percent in the same period last year.
The growth was 3.9 percent in 2012-13 as against 5 percent in the previous financial year.