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Core sector growth contracts to 5.8% in October

The growth of eight core infrastructure industries contracted massively by 5.8% in October 2019, as compared to same period of last year, indicating the severity of economic slowdown. According to data released by the ministry of Commerce and Industry, the combined Index of eight core industries stood at 127.0 in October, 2019, which was 5.8% lower compared to the index of October, 2018. Its cumulative growth during April to October, 2019-20 was 0.2%. 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 17.6% in October, 2019 over October, 2018, and its cumulative index decreased by 5.8% during April to October, 2019-20 over corresponding period of the previous year. Petroleum Refinery production having 28.04% weight increased 0.4% in October, 2019 over October, 2018, while its cumulative index dropped by 1.7% during April to October, 2019-20 over the corresponding period of previous year.

The Natural Gas production having 6.88% weight declined by 5.7 percent in October, 2019 over October, 2018, and its cumulative index was down by 2.6% during April to October, 2019-20 over the corresponding period of previous year. Steel production having 17.92% weight decreased by 1.6% in October, 2019 over October, 2018 while its cumulative index surged by 6.7% during April to October, 2019-20 over the corresponding period of previous year. Electricity generation having 19.85% weight fell 12.4% in October, 2019 over October, 2018 while its cumulative index increased by 1.5% during April to October, 2019-20 over the corresponding period of previous year.

Cement production having 5.37% weight declined by 7.7% in October, 2019 over October, 2018 and its cumulative index fell by 0.6% during April to October, 2019-20 over the corresponding period of previous year. Crude Oil production having 8.98% weight declined by 5.1% in October, 2019 over October, 2018 and its cumulative index fell by 5.8% during April to October, 2019-20 over the corresponding period of previous year. Fertilizer production having 2.63% weight surged by 11.8% in October, 2019 over October, 2018, and, its cumulative index increased by 2.6% during April to October, 2019-20 over the corresponding period of previous year.

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