India: Private-sector PMI falls deeper into contractionary territory in June
The composite Purchasing Managers’ Index (PMI) produced by IHS Markit fell from 48.1 in May to 43.1 in June. As a result, the PMI moved further below the 50-threshold, indicating a decrease in business activity from the previous month.
The services PMI fell from 46.4 in May to 41.2, as the ongoing battle to curb the spread of Covid-19 domestically with strict restrictions on businesses caused employment, new orders and output to decline at a quicker rate. Similarly, on the manufacturing side, the PMI fell from 50.8 in May to 48.1 in June, due to flagging output, new orders, and headcounts.
Commenting on the latest PMI data, Pollyanna De Lima, economics associate director at IHS Markit, said:
“After losing growth momentum in recent months, the manufacturing industry dipped into contraction territory midway through 2021. As a result, there were faster reductions in private sector sales, output and jobs. “With India expanding its vaccine options and the government announcing ambitious plans to immunize the entire adult population by the end of the year, it is hoped that the pandemic can be brought under control and a sustainable economic recovery can begin.”