Saturday, 25 September, 2021

India’s factory activity shrinks in June

India’s factory activity shrinks in June

Popular News

NEW DELHI: India’s factory activity contracted for the first time in almost a year in June as restrictions to contain the deadly second wave of the coronavirus triggered declines in demand and output that pushed firms to cut more jobs, a private survey showed on Thursday.

Although many Indian states have recently relaxed some containment measures following a decrease in daily cases the rapid emergence of the new Delta Plus variant has raised concerns over the nation’s already weak economic outlook, report agencies.

The Nikkei Manufacturing Purchasing Managers’ Index (INPMI=ECI), compiled by IHS Markit, declined to an 11-month low of 48.1 in June from May’s 50.8, moving below the 50-level separating growth from contraction.

“The intensification of the COVID-19 crisis in India had a detrimental impact on the manufacturing economy,” said Pollyanna De Lima, economics associate director at IHS Markit.

“Out of the three broad areas of the manufacturing sector monitored by the survey, capital goods was the worst-affected area in June. Output here declined at a steep rate due to a sharp fall in sales.”