Global Economy

Core growth slows in June but still in double digits


India’s core sector output grew a firm 12.7% in June though it slowed from 19.3% in May as the base effect that boosted growth in earlier months began to normalise.

The Index of eight core industries was up 8% in June 2022 from the pre-pandemic level of June 2019, indicating a recovery in infrastructure sectors and a pickup in the economy. The index measures the output of eight industries — coal, crude oil, natural gas, refinery products, fertiliser, steel, cement, and electricity. All sectors except crude oil showed growth in production in June, with coal output rising 31.1% from a year ago.

Electricity generation was up 15.5% in June, refinery products output grew 15.1% while fertiliser production rose 8.2% in the month from a year earlier. Production of cement rose 19.4%, steel was up 3.3%, and natural gas 1.2%. Crude oil output declined 1.7% from a year earlier.

“Even if compared against June 2019, which was pre-pandemic, growth was impressive at 8%. The performance however was not broad-based,” said chief economist Madan Sabnavis. The pickup meant that demand for power increased and coal production kept pace, he said.

12

Core sector output in the June quarter was up 13.7% from the year-ago period. “Encouraging performance in the eight core sectors continued in June, supported by the low base of last year,” said Rajani Sinha, chief economist,

. “Going forward, a pickup in investment demand should aid in the core sector gathering further momentum.”



READ SOURCE

This website uses cookies. By continuing to use this site, you accept our use of cookies.