India Manufacturing Activity Falls Further
India’s manufacturing activity decreased solidly in July, amid a fall in output and new orders, survey results from IHS Markit showed on Monday.
The headline IHS Markit manufacturing Purchasing Managers’ Index, or PMI, fell to 46.0 in July from 47.2 in June. Any reading below 50 indicates contraction in the sector.
Output contracted further and at a slightly quicker pace in July as firms pared back production in line with weaker demand condition.
New orders fell in July and new export orders contracted. Exports declined at a softer pace for the fourth month in a row.
The number of workforce were reduced in July, with the rate of contraction being faster than recorded prior to the Covid-19 pandemic.
Purchasing activity fell for the fifth month in a row in July and suppliers’ delivery time lengthened further.
On the price front, input prices fell in July, with the rate of reduction slowest in four months sequence of falling costs.
Economic sentiment for the 12-month business outlook increased for the second straight month in July to the highest in five months.
The survey results showed a re-acceleration of declines in the key indices of output and new orders, undermining the trend towards stabilization seen over the past two months,” Eliot Kerr, economist at IHS Markit, said.
“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.”
The survey data was collected from July 13 to 27.