According to official data released on Tuesday showed that all sectors except crude oil registered an increase in output. The production of eight core industries rose by 9.4 percent in July against a 7.6 percent decline in the year-ago month. The output of core sectors had registered a 7.6 percent decline in July 2020 due to COVID-19 related restrictions. On a month-on-month basis, output rose 5.4 percent in July after growing 1.5 percent in June.
In the current core sector data series going back until 2011, the overall index rose, on average, 0.4 percent every July from June before the coronavirus pandemic struck. This follows a similarly unusual sequential rise in the overall index in June. The core sector growth in July is largely unchanged from the revised figure of 9.3 percent for June. In July 2020, core sector output had contracted 7.6 percent as the economy took the first step to normalization following the lifting of the stringent nationwide lockdown imposed to contain the spread of the coronavirus.
The rise in core sector output in July was driven by robust double-digit increases in coal, natural gas, and cement production - all thanks to a low base. While coal output was up 18.7 percent, that of natural gas and cement were 18.9 percent and 21.8 percent higher, respectively, compared to last year.