Output growth in India’s eight core infrastructure sectors slowed to 3.3% in August, the slowest pace since November 2021. It dipped from 4.5% in July, with crude oil and natural gas continuing to report contractions while electricity and steel production clocked sharply lower expansions than the previous month.
The overall output levels in the eight sectors that make up 40% of the Index of Industrial Production (IIP), were 1.5% lower than July 2022 levels, marking the third successive month of such sequential contraction.
The Index of eight core industries for August stood at 138.6, the lowest level since March this year. While six sectors recorded growth from a year ago, on a month-on-month basis, just four industry segments clocked higher output.
Coal output grew 7.6% compared to August 2021, but was 3.92% below July’s levels, while refinery production jumped 7% year-on-year but was 4.8% lower than July 2022.
Fertilisers production growth hit a three-month high of 11.9% and 2.6% above the previous month’s level. Steel output grew at the slowest pace since this January at 2.2% and was fractionally above July levels.
Cement production grew 1.8% from August 2021 but was 2.2% below this July’s output. Electricity generation grew 0.9%, the slowest uptick since February 2022 and 0.8% over the previous month.
Crude oil production shrank for the third successive month, dipping 3.3% from last August and 0.8% from July. Natural gas production contracted 0.9%, the worst show in at least a year, but was 0.5% higher than July.