At 3.6%, eight core sector growth declines to 10-month low in May

But coal production sees a double-digit growth for second month in a row

Growth in output of the crucial eight core industries declined to a 10-month low of 3.6 per cent in May due to a fall in the pace of growth of steel, cement as well as contraction in crude and natural gas.

This might have an adverse impact on the index of industrial production (IIP) as core industries have 40 per cent weightage in the index. Now, much will depend on the remaining 60 per cent of the IIP.

“The moderation in the growth of core sector industries and automobile production suggest an impending decline in the pace of industrial expansion in May