India Manufacturing PMI Jumps In June
A gauge of India's manufacturing sector jumped in June, as economic activity resumed after the nation eased curbs introduced to slow the spread of the Covid-19 virus.
The India Manufacturing Purchasing Managers’ Index, compiled by IHS Markit, stood at 47.2 in June compared with 30.8 in May on a seasonally adjusted basis, according to a media statement. A print below 50 indicates contraction in business activity. The gauge had fallen to an all-time low in April.
India's manufacturing sector moved towards stabilisation in June, with both output and new orders contracting at much softer rates than seen in April and May, said Eliot Kerr, Economist at IHS Markit. Still, most sub-indices remained weak.
Output continued to contract because of constrained production capacity in June. Also, new business dropped further during the month. Demand from international markets, too, continued to fall, though the pace of contraction was the slowest since the implementation of the nationwide lockdown in March.
Producers recorded a reduction in employment as demand remained weak. “Despite easing from May's survey record, the rate of workforce contraction remained among the quickest since data collection began in March 2005,” the statement said.
Kerr cautioned against the impact of the recent spike in new coronavirus cases.
Should case numbers continue rising at their current pace, further lockdown extensions may be imposed, which would likely derail a recovery in economic conditions and prolong the woes of those most severely affected by this crisis.Eliot Kerr, Economist, IHS Markit
Input prices softened and manufacturers passed lower prices to boost sales. Firms remained positive toward the twelve-month business outlook, with sentiment strengthening to a four-month high.