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Factory output shrinks again

Manufacturing Purchasing Manager’s Index declines year-on-year to 47.2 in June but increases from 30.8 recorded in May
The recent spike in fresh coronavirus cases  and the resulting lockdown extensions have seen demand continue to weaken.
The recent spike in fresh coronavirus cases and the resulting lockdown extensions have seen demand continue to weaken.
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Our Special Correspondent   |   New Delhi   |   Published 02.07.20, 04:07 AM

The manufacturing sector contracted for the third straight month in June even as it softened considerably compared with April  and May, a private survey showed.

The Manufacturing Purchasing Manager’s Index (PMI) declined year-on-year to 47.2 in June but increased from 30.8 recorded in May, signalling faster normalisation in manufacturing activity since the nationwide lockdown was lifted on June 1.

A figure of above 50 indicates expansion, while a sub-50 print signals contraction.

“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.

However, the recent spike in fresh coronavirus cases  and the resulting lockdown extensions have seen demand continue to weaken, Kerr added.

According to the survey, output and new orders fell further, but at slower rates. Moreover, new export orders fell for the fourth month in a row.

“Although the rate of decline eased to the softest since March, it remained sharp overall. When explaining the reduction in demand, panellists often cited the coronavirus pandemic,” the survey noted.

GST count

GST revenue collection in June stood at Rs 90,917 crore, up from Rs 62,009 crore mopped up in May and

Rs 32,294 crore in April. The GST mop-up was 9 per cent lower on a year-on-year basis in June, while it was 62 per cent down in May and fell 28 per cent in April.



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