new Delhi. Due to weak demand, the contraction in manufacturing activities in the country increased further during July. Due to weak demand after long lockdown, factories have reduced their workforce and procurement activities have also come down. A monthly survey said this on Monday.
IHS Market's India Manufacturing Purchasing Managers' Index (PMI) stood at 46 points in July. A month ago in June it was at 47.2. In the case of Indian manufacturing sector, this has been the fourth consecutive month when it has registered a shortfall. The PMI Manufacturing Purchasing Managers' Index contracted in April, after a 32-month consecutive increase. Staying above 50 for PMI indicates an increase in activity while staying below it indicates pressure or contraction.
IHS Markit economist Eliot Kerr said the latest PMI data from Indian manufacturers shed more light on the country's economic situation in countries more affected by the Kovid-19 epidemic. Kerr said the survey results showed that the decline in key indices of production and new orders in factories had rebounded. Due to this, the trend of stabilization which was visible during the last two months weakened.
He said that the indications received indicate that the companies are still struggling for work. Because some of their buyers are still in lockdown. This suggests that activity is unlikely to pick up until the transition rate is low and restrictions are not lifted. The survey suggests that contraction has accelerated somewhat in July compared to June, as demand conditions are still weak. In some states, some businesses are still closed due to increased lockdown. Export orders have also seen a decline.
Survey participants say their international buyers are hesitating to place orders as there is still uncertainty about the epidemic. Indian manufacturers have continued to cut workforce in July due to weak demand conditions. However, despite the continued negative impact of Kovid-19 in the survey, improvement in perception regarding future activities for the second consecutive month was observed.
This post was published on August 3, 2020 2:04 pm
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