Eight core sectors growth slips to 2.4% in July

New Delhi: The growth of eight core sectors slowed to 2.4 percent in July due to contraction in output of crude oil, refinery products, fertiliser and cement.

These eight infrastructure sectors -- coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity -- had witnessed a 3.1 percent growth in July last year.

The production of crude oil declined by 0.5 percent, refinery products by 2.7 percent, fertiliser by 0.3 percent and cement by 2 percent, as per official data.

Coal output growth decelerated to 0.7 percent last month as against 4.1 percent in July 2016.

According to data, natural gas output rose by 6.6 percent in July.

Steel production and power generation rose to 9.2 percent and 5.4 percent, respectively in July this year from zero per cent and 2.1 percent in the same month last year.

Cumulatively, the eight core sectors in April-July recorded a growth of 2.5 percent as against 6 percent in the same period a year ago.

Slow growth in key sectors would also have implications on the Index of Industrial Production (IIP) as these segments account for about 41 percent to the total factory output.

In June, these eight sectors had recorded a growth rate of 0.8 percent.