05 August, 2020
6 Min Read
Purchasing Managers’ Index (PMI)
GS-Paper-3 Data (PT-Facts)
According to the recent IHS Markit India Manufacturing Purchasing Managers’ Index (PMI), India’s manufacturing sector activity contracted at a faster pace in July 2020 than in June 2020.
Reason for Contraction: The demand conditions remained subdued with some businesses still closed amid lockdown extensions due to emergence of new epicentres of Covid-19 pandemic. Export orders have also witnessed a decline.
Effect: The re-acceleration of declines in the manufacturing sector is undermining the trend towards economic stabilisation seen over the past two months. The firms have reduced both staff numbers as well as purchasing activity.
Purchasing Managers' Index
In India the positive impact from unlock is not as strong as the negative impact of the lockdown. Therefore the government needs to contain the spread of the Covid-19 pandemic on a priority to make economic recovery sustainable.
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