Core sector output shrinks for third straight month in May.
Output of the 8 core sectors of the economy shrank by 23.4 per cent in May, as factories remained hamstrung by a lack of labour and cash in the wake of the nationwide coronavirus (Covid-19) lockdown.
While the contraction narrowed from April's record fall of 37 per cent, experts said the aftershocks of the lockdown would continue to weigh heavily on domestic industry, which is expected to post lower but certain contraction in coming months. ICRA predicts overall industrial production may see a contraction of 35-45 per cent in May, down from 55.5 per cent in April.
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Updated figures released by the Commerce and Industry Ministry on Tuesday showed 7 out of the 8 core sectors of the economy continued to contract in May. The infrastructure segment continued to see the biggest production shocks among all sectors, despite slowing the fall. Steel production tumbled by 48.4 per cent after April's massive 78.7 per cent fall.

However, cement production shrank by 22.2 per cent following a 85.3 per cent fall in April. Both the sectors were in the grip of volatility even before the lockdown, but strict social distancing norms have meant that construction activities have been suspended across the country.