Core sector output shrinks 5.8 per cent in October

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Output of eight core infrastructure industries contracted by 5.8 per cent in October, indicating the severity of economic slowdown, according to the government data released on Friday. As many as six of eight core industries saw a contraction in output in October. Coal production fell steeply by 17.6 per cent, crude oil by 5.1 per cent, and natural gas by 5.7 per cent.

Production of cement (- 7.7 per cent), steel (- 1.6 per cent), and electricity (- 12.4 per cent) also declined during the month. The only sector that posted growth in October was fertilizers where production increased by 11.8 per cent year-on-year.

Growth in output of refinery products slowed down to 0.4 per cent in October as against 1.3 per cent in the same period last year. The eight core sectors had expanded by 4.8 per cent in October 2018.

During the April-October period, the growth of core industries fell to 0.2 per cent against 5.4 per cent in the year-ago period. Output of eight core infrastructure industries had contracted by 5.1 per cent in September, the lowest in the decade.

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