Core sector output contracts sharply by 5.2% in September – Economic Times, The Times of India

The core sector for the month of September contracted massively by 5.2 per cent from the 0.5 per cent contraction seen in August. The index was dragged down by coal mining which came in at – 20 .5 per cent.

The figures for the same month last year stood at 4.3 per cent. The cumulative growth during the period of April-September 2019 – 20 was 1.3 per cent.

The index of eight coreindustriescomprises coal, crude oil,natural gas, steel, cement, electicity,fertilizerand refinery products. The index makes up 40. 27 per cent of the Index of Industrial Production (IIP) pointing towards the fact that the current figure could have a bearing on the industrial production data to be released in November.

August’s eight core industries growth has been revised to 0.1% from -0.5% earlier.

Coal sector growth is at – 20 .5% vs -8.6% month-on-month. While crude oil output growth for September is unchanged at -5.4% month-on-month. Natural gas output growth is down at -4.9% vs -3.9% month-on-month.

Refinery products growth is at -6.7% vs 2.6% month-on-month, steel output growth at -0.3% Vs 5% month-on- month and cement output growth is at -2.1% Vs -4.9% month-on-month.

The fertilisers sector was the only outlier in the numbers today, clocking in at 5.4% vs 2.9% month-on-month.

Electricity output growth for the month of September at -3.7% Vs -2.9% month-on-month.

RBI is expected to cut its key policy rate by (basis points) onebasis pointis one-hundredth of 1% ), following the 135 basis points cut already announced in 2019 so far.

The Reserve Bank ofIndiasharply revised downwards its GDP growth forecast for the current fiscal to 6.1 per cent from 6.9 per cent earlier. But it expected that the economy will pick up steam in the second-half of the fiscal.