Higher electricity generation powered a 5.2% rise in the index of eight core industries in India in June, after growth in key industries dipped the previous month post a stellar show in April.

Besides power generation, higher output of coal, cement and fertilisers fuelled the rise in index, as per data compiled by Ministry of Commerce & Industry.

In particular, coal output rose 12% in June, the fastest rise in at least past 12 months. However, for the three months ended June 30, coal production grew at a slower rate than the same quarter last year and was just above the growth rate for 2015-16, as the first two months of the year marked low activity for coal producers.

While the official data reflects industrial activity perking up in the first quarter of the new financial year, monthly figures indicate volatility. Overall index of core industries had shot up 8.5% in April only to decelerate the next month to 2.8%.

The core industries provides a lead indicator of overall industrial activity in the country. These key industries comprise over a third of the index of industrial production (IIP). IIP data is made public with a lag.

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