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Economic growth declines to 5.5 pc in April-June

New Delhi(PTI): Showing persistent sluggishness, economy grew by 5.5 per cent in the April-June quarter this fiscal due to poor performance of manufacturing, mining and farm sectors.

The gross domestic product (GDP) had expanded by 8 per cent in the April-June quarter of 2011-12.

During the quarter ended June 30, the manufacturing sector grew marginally by 0.2 per cent, against 7.3 per cent growth in the same period of 2011-12, according to the official data released today.

Mining and quarrying sector recorded a growth of 0.1 per cent during the quarter under review, as against a contraction of 0.2 per cent in Q1 of 2011-12.

Farm production expanded by 2.9 per cent in the first quarter against 3.7 per cent in the same period last year. The trade, hotels, transport and communications segment also witnessed lower pace of growth at 4 per cent compared to 13.8 per cent expansion in the same quarter year-ago period.

The growth rate of electricity, gas and water supply also dipped to 6.3 per cent in Q1, from 8 per cent in the corresponding period last fiscal.

However, the growth in the construction sector was robust at 10.9 per cent during Q1 of 2012-13, as against 3.5 per cent in the year-ago period.

Growth rate of services sector, including insurance and real estate, also improved to 10.8 per cent in the first quarter, from 9.4 per cent recorded in April-June quarter last fiscal.

Economic growth in the January-March quarter was at nine-year low of 5.3 per cent, as the provisional estimate released earlier.

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