Quote on Core Sector Output by Rahul Agrawal, Principal Economist, ICRA Ltd
Below the Quote on Core Sector Output by Rahul Agrawal, Principal Economist, ICRA Ltd
"The year-on-year (YoY) growth in core sector output slowed to a 7-month low of 0.5% in May 2026 from 1.8% in April 2026, amid a deterioration in the performance of five of the eight sectors between these months.
As many as five sectors reported a contraction in their output in May 2026, including refinery products, which witnessed the sharpest decline in 42 months, partly reflecting the fallout of the West Asia crisis. The growth in electricity generation improved to a 19-month high of 8.7% in the month, aided by high temperatures as well as a favourable base; this ensured that overall core output growth remained in the positive territory in the month.
Given the tepid performance of the core sector in May 2026, IIP growth is likely to weaken to 2-3% in the month from 4.9% in April 2026."
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