Growth in the eight key core sectors slowed to 0.2% in June—the lowest in around 4 years.
The growth was pulled down by a decline in four out of eight segments and pointed to a slowdown for overall industrial growth.
Data released by the commerce and industry ministry on Wednesday showed the eight core sectors—coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity rose at 0.2% yoy vs. 7.8% in June 2018.
Growth during April to June was 3.5%, lower than the 5.5% posted in the year-ago period.
The dip is largely owing to low refinery production, which accounts for ~30% of the index, by weight. The sector saw a 9.3% contraction in June. The crude oil, cement, and steel sectors also contracted.
The core sector accounts for 40.2% of the IIP and the slowdown in June will impact the factory output data for June, which will be released later in the month.