Nov core sector growth at 7.8%, slowest in six months

livemint.com:

NEW DELHI : Output of eight core infrastructure sectors expanded 7.8% in November, but the growth was the slowest since June 2023, official data showed on Friday. This represents a decrease from the 12% expansion seen in October and is down from the 5.7% growth recorded in November last year. Coal and refinery products saw double-digit increases, while cement and crude oil production declined.

Core industries' output had expanded 5.7% in November last year. In the period under review, coal and refinery products supported the core industries' output with double-digit increase in production, while cement and crude oil production contracted, data released by the ministry of commerce showed. Data shows a marginal contraction in crude oil production in November from the year-ago period and a sharp contraction in cement production linked to a pause in construction activities across the country.

Crude oil production contracted 0.4% November, while cement production contracted at 3.6%. “Though core industries' growth in November 2023 was the slowest after May this year, it may be too early to say whether this slowdown could affect the overall health of the economy going forward," said economist Biswajit Dhar. However, it must be recognised that since the global economy is experiencing a perceptible slowdown this quarter, the Indian economy is also facing some headwinds as a result, said Dhar, who is a professor at Centre for Economic Studies and Planning, Jawaharlal Nehru University.

“The numbers are okay, except for cement. It seems the slowing down in construction sector is the reason for it. But I don’t think this is going to change the outlook for the next quarter," said Pronab Sen, former country director for the India