Manufacturing activity falls to seven-month low
Manufacturing activity fell to a seven-month low in March with demand constrained by the rise in Covid-19 cases, a monthly survey said.
The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) fell from 57.5 in February to a seven-month low of 55.4 in March.
“Production, new orders and input buying expanded at softer rates,” said Pollyanna De Lima, economics associate director at IHS Markit.
Lima noted that “survey participants indicated that demand growth was constrained by the escalation of the pandemic, while the rise in input buying was curtailed by an intensification of cost pressures.
“With Covid-19 restrictions expanded and lockdown measures re-introduced in many states, Indian manufacturers look set to experience a challenging month in April.”
Darren Aw, Asia Eeconomist, Capital Economics said “the renewed surge in new Covid-19 cases is a growing threat to the broader economic recovery”.