The output of core-sector industries dropped 1.3 percent year-over-year in November – its sharpest contraction at least since the current series was introduced in April 2005, reviving concerns about underlying conditions in the economy. The mild contraction in output was led by declines in the output of steel, cement and crude oil sectors.
The eight core industries – coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity – with a total weightage of nearly 38 percent in IIP had grown at 6.7 percent in November 2014 and 3.2 percent in October 2015 – thanks to a favorable base and fewer working days due to Diwali.
ICRA said weaker performance of key lead indicators such as the core sector, merchandise exports and automobile production in November as compared to the previous month portend a sharp dip in IIP growth.
The material has been provided by InstaForex Company – www.instaforex.com