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Core sector growth slows to 9-month low in May

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New Delhi: Growth in the country’s crucial infrastructure sector slowed to a nine-month low in May, dragged down by contraction in the electricity, crude oil, natural gas, and fertiliser segments.Data released by the commerce and industry ministry on Friday showed that eight core sectors, spanning coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity, grew by 0.7% in May. This was slower than the revised 1% in April and below the 6.9% recorded in May last year.The core sector accounts for nearly 41% of the index of industrial production (IIP), and the outcome of the sector has a bearing on the overall factory output numbers expected to be released later this month.The data showed that the electricity sector contracted by 5.8% in May compared with 1.7% expansion in April, while the fertiliser sector fell by 5.9% during the month compared with a contraction of 4.2% in April. The natural gas sector contracted by 3.6% in May compared with a decline of 0.9% in April. The fertiliser sector contracted for the second successive month, while the crude oil sector declined for the fifth consecutive month in May, contracting by 1.8%.Steel and cement sectors displayed some strength. The steel sector grew by 6.7% during the month, while cement rose by 9.2% in May compared with an increase of 6.3% in April.

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