GDP slows down to 5.3% in Jul-Sept

Gross domestic product (GDP) has slowed down to 5.3 percent in July- September versus 5.5 percent in last quarter and 6.7 percent in corresponding quarter last fiscal. It is is in-line with CNBC-TV18 poll. Poor performance of manufacturing and agriculture sectors pulled down growth in the second quarter.

The manufacturing sector grew an annual 0.8 per cent during the quarter while agriculture output rose 1.2 per cent.  However, growth gross fixed capital formation was up 4% year-on-year. 

Mining and quarrying sector, however, showed some improvement and recorded a growth of 1.9 per cent during the quarter, as against a contraction of 5.4 per cent in the second quarter of 2011-12.

The economic growth in the first six month of this fiscal (April-September) is 5.4 per cent, lower than 7.3 per cent growth clocked in the year-ago period.

In the July-September quarter, trade, hotels, transport and communications segment also witnessed lower pace of growth at 5.5 per cent compared to 9.5 per cent expansion in the same quarter in year ago.

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The growth rate of electricity, gas and water supply also dipped to 3.4 per cent in the second quarter, from 9.8 per cent witnessed in the same quarter of 2011-12. Construction sector expanded by 6.7 per cent Q2 of 2012-13, as against 6.3 per cent in the year-ago period.

Growth rate of services sector, including insurance and real estate, stood at 9.4 per cent in the second quarter, against 9.9 per cent recorded in same quarter last fiscal.

Finance Minister P Chidambaram had earlier said that the economy faces a "difficult situation" and the way to overcome this difficult situation is through innovation and increasing the production of goods and services.

Here's how other sectors stack up:

Manufacturing growth at 0.8% vs 2.9% (YoY)
Agri sector growth at 1.2% vs 3.1% (YoY)
Mining sector growth at 1.9% vs -5.4% (YoY)
Construction sector growth at 6.7% vs 6.3% (YoY)
Service sector growth at 7.2% vs 8.8% (YoY)
Industry growth at 2.8% vs 3.7% (YoY)
Gross fixed capital formation up 4% (YoY)

(With inputs from PTI)