Core sector growth records a four month high - Core sector Feb-22 - Acuité Ratings

The output of eight core sectors rose to a four month high 5.8% YoY in Feb-22 from an upwardly revised print of 4.0% YoY in Jan-22. While there has been a sequential contraction of output in Feb of 5.3%, it has to be seen in the context of the lower number of working days during the month and some residual impact of the Omicron wave. On a cumulative basis, the core sector output has grown by 11.0% in the first eleven months of the current fiscal (Apr-Feb) as compared to the corresponding period of the previous year. Importantly, the cumulative output is a modest 2.0% higher than the comparable pre-pandemic period in FY20. Except for crude oil and refined petroleum products, the other six segments of the core sector have shown moderate to healthy growth over the Apr-Feb period vis-à-vis that in FY20, reflecting the fact that the core sector has largely been able to attain normalization in its output despite multiple bouts of the Covid pandemic.

Looking ahead, the increased commodity prices especially that of crude oil, the fresh supply chain bottlenecks, and the weakening global growth outlook in the context of the Russia-Ukraine crisis may impact industrial and core sector output in the near term.

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Source : Equity Bulls

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CoreSectorGrowth February2022 AcuiteRatings