The output of eight core infrastructure sectors grew just 3.3 per cent in August, the slowest pace in nine months and compared with 4.5 per cent in the previous month, partly because the base effect turned unfavourable. They had grown 12.2 per cent in August last year.
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The slowdown will weigh on the index of industrial production given that these core sectors account for 40.3 per cent of the index of industrial production.
Although six of the eight sectors (except crude oil and natural gas) saw growth in August from a year before, the support widely varied from sector to sector. Steel grew just 2.2 per cent (eight-month low), cement by 1.8 per cent and electricity by just 0.9 per cent (seven-month low). Crude oil output, which has been easing since June, contracted 3.3 per cent in August. Natural gas output shrank 0.9 per cent.
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However, petroleum & refinery products rose 7 per cent in August over a year ago. Fertiliser output grew 11.9 per cent and coal output by 7.6 per cent. FE
