The eight core sector industries record negative growth at 0.5%.

The eight core sector industries recorded negative growth at 0.5% against 4.7 % in August last year.

The eight core sector industries record negative growth at 0.5%.
File image of Nirmala Sitharaman. (Photo Credit: PTI)

According to Data released on Monday, The eight core industries in August recorded a 0.5 per cent decline in output of crude oil, coal, electricity, cement, and natural gas.

However, according to the data of the Commerce and Industry Ministry in August Coal, crude oil, natural gas, cement, and electricity recorded a negative growth of 8.6 per cent, 5.4 per cent, 3.9 per cent, 4.9 per cent and 2.9 per cent, respectively. However, fertilizer and steel production grew by 2.9 per cent, and 5 per cent, respectively during the month under review.

The eight core sector industries fertilizer, coal,  steel, crude oil, natural gas, refinery products,  cement and electricity have been expanded by 4.7 per cent in August last year.

Aditi Nayar, principal economist at ICRA Ltd, said, 'With the contraction in core sector output, auto production and non-oil merchandise exports, we expect IIP growth to print at a muted sub-1% in August. We continue to expect the MPC to cut the repo rate by 25 bps in the upcoming October 2019 policy review. She added on by saying, 'the contraction in core sector growth in August confirmed that the modest pickup in IIP growth in July did not signal the start of an industrial recovery.'

Data released by the central bank showed non-food credit growth a key indicator of consumption demand decelerated to 9.8% in August from 12.4% a year ago.