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The core sector continued its upward swing in August as it grew at a seven month high of 3.7% in August against 6.1% growth in the corresponding period last year, according to data released by Ministry of Commerce and Industry today.
This was on the back of high growth rate in electricity, cement and coal segment. In the previous month, core sector which comprises of eight infrastructure industries grew at three-month high of 3.1%.
Electricity, grew at a massive 6.7% in August compared to 1.9% in August last year. Cement registered growth of 5.5% in August this year against 0.4% in the same period last year. Petroleum refinery products expanded 4.9% in August over a high 31.8% growth in August 2012. Coal sector grew at 5.5% against 11.8% growth.
However, contraction in output of natural gas continued this month as well and remained at 16.1% against contraction of 13.5%. Natural gas has been contracting since December 2010. Crude oil continued to contract for the fifth consecutive month and was at 1.5% against contraction of 0.6% in same period last year.
The core sector contributes 37% to the Index of Industrial Production (IIP) which will be released on 12 September. This has taken the overall growth rate in core sector from April-August to 2.3% this year against a high 6.3% in same period last year. The IIP grew at four-month high of 2.6% in July when the core sector had expanded 3.1%.
