NEW DELHI: A sharp fall in the output of coal , natural gas and crude oil pulled down growth in the group of eight core sectors to a three-month low in April. As per data released by the commerce and industry ministry on Wednesday, coal output slipped 3.8% and cement production fell 3.7%. Crude oil output dropped 0.6%.“The base effect has also been in play with some numbers being low on account of higher numbers last year. Negative growth in cement is a worry as it does reflect limited movement in the infra space,” said CARE Ratings chief economist Madan Sabnavis.In April 2016, the core sector growth was the highest since December 2014. Steel output grew 9.3% on back of better demand and curbs on dumping.Core sector growth is likely to stay lacklustre unless there is support from the government’s infrastructure and housing push, said Devendra Kumar Pant, chief economist at India Ratings & Research, a Fitch Group company.

Source: Economic Times May 31, 2017 12:00 UTC