Core sector output slows to 3.5% in April: NSO data - Hindustan Times
close_game
close_game

Core sector output slows to 3.5% in April: NSO data

Jun 01, 2023 01:49 PM IST

The eight core industries account for 40.27% of the Index of Industrial Production (IIP) for which April data will be released on June 12

Output of eight infrastructure industries – the core sector – slowed marginally to 3.5% in April, from 3.6% in March, the slowest pace in the past six months, owing to the contraction in electricity, refined products, natural gas, and crude oil sectors, according to data released by the National Statistical Office (NSO) on May 31.

The core sector expanded by 9.5% in April 2022. (Bloomberg file image)
The core sector expanded by 9.5% in April 2022. (Bloomberg file image)

The eight core industries account for 40.27% of the Index of Industrial Production (IIP) for which April data will be released on June 12.

Hindustan Times - your fastest source for breaking news! Read now.

The core sector expanded by 9.5% in April 2022. On a sequential basis, the core sector index shrank by 8.6% in April for the first time since February.

Also Read:Retail inflation cools to 18-month low 4.7%

The moderation in core sector output was led by the contraction in four of the eight sectors in comparison to March.

Electricity production, with 19.9% share, declined for the second consecutive month by 1.4% in April, from 1.6% in March. This could be a result of low power demand due to a cooler than usual April.

For refined products, with 28% share, the production contracted by 1.5% from 1.5% growth in March. Natural gas, with 6.9% share, also contracted by 2.7% in April from 2.8% growth in March.

Production of crude oil, with 9% share, fell by 3.5% in April, from a 2.9% contraction in March. The other four sectors, steel (17.9% share), fertilizers (2.6%), cement (5.4%) and coal(10.3%) saw growth in April, and almost all, except coal, showed an acceleration relative to March.

“As in FY23, the robust yoy growth in the steel and cement sectors continues to receive support from the capex spend of union and state governments. The capital outlay of union and state governments (13 states, representing over 50% of all states capex) grew by a strong 12.1% yoy and 65.0% yoy respectively in April 2023,” said Dr. Sunil Sinha, principal economist, India Ratings and Research, in a note. “Ind-Ra expects the core sector to record a yoy growth of around 4-5% in May 2023,” Sinha added.

Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it's all here, just a click away!- Login Now!
Stay informed on Business Newsalong withGold Rates Today, India News and other related updates on Hindustan Times Website and APPs
SHARE THIS ARTICLE ON
Share this article
  • ABOUT THE AUTHOR
    author-default-90x90

    Pavitra Kanagaraj is a data journalist. She uses public and private datasets to cover economy, women, and politics. Prior to HT, she did macroeconomic research at UNESCAP and ERF. She co-founded the Rethinking Economics chapter at JNU in 2021.

SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Monday, February 26, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On