Core sector growth moderates to 5.2% in April

NEW DELHI: The output of six core infrastructure industries rose at its slowest pace in last five months, indicating that the industrial growth in April could also moderated from 7.3% reported in March.

The six core industries -- crude oil, petroleum refinery products, coal, electricity, cement, finished (carbon) steel -- have a combined weight of 26.7% in the Index of Industrial Production ( IIP) and therefore are considered a good lead indicator of industrial production.

The output of six infrastructure industries rose 5.2% in April 2011 against 7.4% expansion in March.

According to the numbers released by the government on Wednesday, the moderation in growth is mostly a result of negative growth in cement, -1.1%, and significantly slower growth in finished steel, down to 4.3% from 12.9% in April last year.

In addition, petroleum refinery products and coal both performed better this April than in 2010. The former grew at 6.6% compared to 5.3% last year and the latter at 2.9% compared to –2.9%.