July infrastructure output up 1.8 pct

Core industries grew 5.1 per cent in July last year.

The sector,which grew by 6.8 per cent in June,had helped the overall recovery as the industrial expansion touched 7.8 per cent.

A contraction of 14.4 per cent in petroleum refinery products8211;against 11.8 per cent growth in the year-ago period8211; dragged the six key industries in July.

The core sector comprises petroleum refinery,crude oil,coal,electricity,cement and finished steel. They together account for 26.68 per cent in industrial production.

Crude oil at lower rates improved a bit but remained in the negative zone at 0.4 per cent. In the comparable period,it had declined by 3 per cent.

However,coal expanded by 9.7 per cent,electricity 3.3 per cent,cement 10.6 per cent and finished steel 1.2 per cent. The expansion in steel is lacklustre compared to 6 per cent in the same month in 2008.

8220;One month drop or pick-up cannot lead to any conclusion,8221; CRISIL Principal Economists D K Joshi said,adding there was a volatility in the industrial production.

However,thanks to better showing in the previous three months,the core sector improved by 4.1 per cent during April-July against the same period last fiscal.