Six Core sectors growth dropped to 2.3 in November

The output of six core sectors Coal, Steel, Cement, Electricity, Petroleum products and Crude Oil has posted a very dismal growth of only 2.3% for the month of November compared to same month last year. This value is the lowest in last 21 months. While the core sector growth was 8.6% in October and 4.4% in September, this drop clearly signals for a further slowdown.

These six core sectors have a combined weight of 26.7% in the index of industrial production (IIP), expecting this performance to pull down IIP data for the month of November. This dismal performance of these six core sectors was because of bad performance of these sectors and low demand because of adverse macroeconomic conditions. Industrial production growth is becoming slow due to forecast of high interest rate in coming quarters.