Economy & Market
Core sectors, including cement, post strong growth
The eight core sectors of the economy have registered robust year-on-year growth in June, thanks to a huge jump in output of electricity, coal and cement sectors, according to data released by the Commerce and Industry Ministry.
In June, the growth in electricity generation with a weight of 10.32 per cent in the Index of Industrial Production (IIP) - the maximum among the eight core sectors - had soared to 8.1 per cent. It had grown by 14.7 per cent in April, but then dropped to 4.6 per cent in May. In June 2015, the sector had recorded only a 1.2 per cent growth.
Coal output in June had risen by 12 per cent, the highest since the 14.6 per cent registered in November 2014. Coal production had grown by 5.4 per cent in June 2015. The cement sector posted a 10.3 per cent growth in June, the highest since 11.89 per cent in March 2016. In June 2015, the sector had grown by 2.9 per cent.
Growth in the steel sector dropped to 2.4 per cent in June, which was the lowest since (-) 0.5 per cent in February 2016. The output of the sector was 4.2 per cent in June 2015. Production in the fertilizer sector increased from 5.8 per cent in June 2015 to 9.8 per cent in June 2016, but this was a fall from the 14.8 per cent registered in May 2016.
On the other hand, refinery products' output decreased from 7.5 per cent in June 2015 to 3.5 per cent in June 2016, but it was more than the 1.2 per cent notched up in May 2016.
Crude oil and natural gas output have continued to be in negative growth territory since March 2016. In June, the output of crude oil shrunk by 4.3 per cent, while that of natural gas contracted by 4.5 per cent.