Core sector clocks 5% growth rate

Riding high on the higher refinery output and steel production, the country's core sector expands to 5%, a three month high in September a year ago as compared to 3.2% in August this year, Commerce ministry said in a statement. The core sector index measures output in eight infrastructure sectors - steel, cement, coal, refinery, natural gas, crude oil, fertilizers, and electricity generation. The sector index has a 38% weight in the Index of Industrial Production (IIP), suggesting an improvement in industrial production in September. Analysts have cited uptick in expansion of non-oil exports, healthy growth of auto production and inventory stocking prior to the festive season for the growth. At 21.3%, sale of passenger vehicles in September was the highest in terms of monthly sales in more than four years. The sharpest rise in output expansion was seen in refinery, which grew 9.3% from 3.5% in August, whereas, fertilizer output rose 2%, slower than the August growth of 5.7%. However, coal, crude oil, and natural gas were the three sectors where production continued to fall and the declines were 5.8%, 4.1%, and 5.5% respectively, it added.