Eight Core Industries for November 2019

Seasonally adjusted eight core output shows signs of recovery in November 2019.

Production activities in eight core industries (a measure of infrastructure output of the economy) for November 2019 contracted for fourth month in a row. However, the slowdown of -1.5% YoY shows signs of recovery as compared to -5.8% YoY in October 2019, an all-time low since the construction of the index with 2011-12 base year.

The narrowing contraction is majorly due to growth in production of primary sources of energy like Petroleum refinery products and electricity generation, which has a major weightage of 28.3% and 19.85%, respectively, among the eight core industries.

Along with this, when seasonally adjusted, the eight core output has started showing signs of positive growth for two consecutive months, as it grew by 3.9% MoM in November 2019 vs -5% MoM in September 2019 . Therefore, this indicates revival signs in infrastructure output in the economy.

If this impact is carried further in the upcoming IIP data for November 2019, then we can say that the Indian economy has started showing signs of recovery after a prolonged period of slowdown.