Monday, Sep 21, 2020 | Last Update : 09:41 AM IST

180th Day Of Lockdown

Maharashtra118801585793332216 Andhra Pradesh6177765307115302 Tamil Nadu5364774812738751 Karnataka5113454048417922 Uttar Pradesh3362942632884771 Delhi2347011981034877 West Bengal2155801870614183 Telangana1713061397001033 Odisha167161133466722 Bihar164224149722855 Assam150349121610528 Kerala12221687341490 Gujarat119088999083271 Rajasthan109088906851293 Haryana103773816901069 Madhya Pradesh97906743981877 Punjab90032658182646 Chhatisgarh7777541111628 Jharkhand6710052807590 Jammu and Kashmir5971138521951 Uttarakhand3713924810460 Goa2678320844327 Puducherry2142816253431 Tripura2069612956222 Himachal Pradesh11190691997 Chandigarh92566062106 Manipur8430653951 Arunachal Pradesh6851496713 Nagaland5306407910 Meghalaya4356234232 Sikkim2119178923 Mizoram15069490
  Business   In Other News  03 Aug 2020  Manufacturing activity shrinks again in July, PMI below June-level

Manufacturing activity shrinks again in July, PMI below June-level

PTI
Published : Aug 3, 2020, 1:01 pm IST
Updated : Aug 3, 2020, 1:01 pm IST

In April, the index had slipped into contraction mode, after remaining in the growth territory for 32 consecutive months

 India's manufacturing sector activity contracts for 4th straight month in July. (PTI Photo)
  India's manufacturing sector activity contracts for 4th straight month in July. (PTI Photo)

New Delhi: India's manufacturing sector activity contracted at a slightly faster pace in July as demand conditions remained subdued amid prolonged closures, following which firms reduced both staff numbers as well as purchasing activity, a monthly survey said on Monday.

The headline seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) stood at 46 in July, down from 47.2 in June.

 

This is the fourth straight month of contraction for the Indian manufacturing sector.

In April, the index had slipped into contraction mode, after remaining in the growth territory for 32 consecutive months. In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction.

"Latest PMI data from Indian manufacturers shed more light on the state of economic conditions in one of the countries worst affected by the COVID-19 pandemic,” said Eliot Kerr, Economist at IHS Markit.

The survey results showed a re-acceleration of declines in the key indices of output and new orders, undermining the trend towards stabilisation seen over the past two months, Kerr said.

 

He further noted that "anecdotal evidence indicated that firms were struggling to obtain work, with some of their clients remaining in lockdown, suggesting that we won't see a pick-up in activity until infection rates are quelled and restrictions can be further removed".

As per the survey, output contracted at a slightly faster pace than in June as demand conditions remained subdued with some businesses still closed amid lockdown extensions.

Moreover, export orders also witnessed a decline. Survey participants commented that international clients were hesitant to place orders while the duration of the pandemic remained uncertain.

 

Deteriorating demand conditions led Indian manufacturers to continue cutting staff numbers during July.

On the cost front, manufacturers reported another decrease in input prices during July, the survey said adding that subdued demand for most goods more than offset the inflationary effects of shortages in some raw materials, the survey said.

However, despite the ongoing negative impact of COVID-19, sentiment towards future activity improved for the second month running, the survey said.

Tags: india factory activity, manufacturing activity, sharper economic contraction, ihs markit, covid 19, covid, coronavirus lockdown
Location: India, Delhi, New Delhi