Core sector output shrinks for third straight month in May, shrinks 23.4%

In May, the production of refinery products, a key export item, took the biggest hit. Output fell by 21.3 per cent after contracting by 24.2 per cent in April

The output of the eight core sectors of the economy shrank 23.4 per cent in May, against 37 per cent in the previous month, as factories remained hamstrung by a lack of labour and cash shortages owing to the nationwide lockdown. 

Experts say the aftershocks of the lockdown will continue to weigh on domestic industry, which is expected to post a lower but certain contraction in coming months.

ICRA predicts industrial production may see a contraction of 35-45 per cent in May, down from 55.5 per cent in April.

The updated figures released by the Commerce and Industry Ministry on Tuesday showed seven