new Delhi. Domestic manufacturing activity remained at a record low in April due to a nationwide lockdown. According to a monthly survey report released on Monday, companies saw large layoffs and new orders were also sunk. The IHS Market India Manufacturing Purchasing Managers' Index (PMI Manufacturing) fell to 27.4 points in April. It was 51.8 points in March. This survey shows the sharpest decline in business activity in the history of this survey being conducted among procurement managers of companies for the past 15 years, while manufacturing sector activities remained steadily upward for the last 32 months.
The expansion of business activity while the PMI is above 50 points indicates the dilution of activities. According to the report, large scale industries remained closed due to the lockdown. Due to this, manufacturing activities were adversely affected in April. New orders fell for the first time in the last two and a half years. This is the fastest decline in the last 15 years.
According to Elliot Kerr, an economist associated with ISS Market, manufacturing activity in March remained relatively ineffective, but the impact of the Corona virus crisis on the region was clearly seen in April. According to experts, the factory was temporarily closed due to restrictions imposed to prevent the spread of the corona virus. Due to this the level of production went down so much. The first decline in export orders since October 2017 was seen in March. Which fell further in April.
The manufacturing sector also saw job cuts in April due to falling demand from companies. Companies cut their workforce drastically due to factory closures, the sharpest drop in employment in the survey's history. However, the scenario of improvement in demand has been kept for the year. After recovering from the corona virus crisis, market demand is expected to recover.
This post was published on May 4, 2020 3:40 pm
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