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Core sector growth contracts to 1.5% in November

01 Jan 2020 Evaluate

 The growth of eight core infrastructure industries contracted for the fourth consecutive month in November 2019 by 1.5 percent, as compared to same period of last year. However, the pace of contraction slowed to 1.5 percent in November as compared to 5.8 percent in October 2019 led by growth in output of fertilizer, cement and refinery products. According to data released by the ministry of Commerce and Industry, the combined Index of eight core industries stood at 126.3 in November, 2019, which was 1.5% lower compared to the index of November, 2018. The Eight Core Industries - coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity - comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).  

Among eight core sectors, Coal production having 10.33% weight declined by 2.5% in November, 2019 over November, 2018, and its cumulative index decreased by 5.3% during April to November, 2019-20 over corresponding period of the previous year. Petroleum Refinery production having 28.04% weight increased 3.1% in November, 2019 over November, 2018, while its cumulative index dropped by 1.1% during April to November, 2019-20 over the corresponding period of previous year.

The Natural Gas production having 6.88% weight declined by 6.4 percent in November, 2019 over November, 2018, and its cumulative index was down by 3.1% during April to November, 2019-20 over the corresponding period of previous year. Steel production having 17.92% weight decreased by 3.7% in November, 2019 over November, 2018 while its cumulative index surged by 5.2% during April to November, 2019-20 over the corresponding period of previous year. Electricity generation having 19.85% weight fell 5.7% in November, 2019 over November, 2018 while its cumulative index increased by 0.7% during April to November, 2019-20 over the corresponding period of previous year.

Cement production having 5.37% weight increased by 4.1% in November, 2019 over November, 2018 while its cumulative index fell by 0.02% during April to November, 2019-20 over the corresponding period of previous year. Crude Oil production having 8.98% weight declined by 6.0% in November, 2019 over November, 2018 and its cumulative index fell by 5.9% during April to November, 2019-20 over the corresponding period of previous year. Fertilizer production having 2.63% weight surged by 13.6% in November, 2019 over November, 2018, and, its cumulative index increased by 4.0% during April to November, 2019-20 over the corresponding period of previous year.

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