India PMI August 2020

India: Private sector PMI improves to a five-month high

The composite Purchasing Managers’ Index (PMI) produced by IHS Markit rose to 46.0 in August from 37.2 in July. Nevertheless, the PMI remained below the 50-threshold indicating another decrease in business activity from the previous month.

The services PMI rose to 41.8 in August from 34.2 in July as new orders, output and employment levels all fell at a slower pace in August compared to July. The fall in new business and production remained steep in August due to the pandemic, but businesses continued to resume operations following lockdown restrictions imposed earlier in the year, in turn driving the improvement in the services sector PMI. On the price front, input costs rose marginally due to a rise in fuel costs, with producers passing increased cost burden on to consumers through output prices.

On the manufacturing side, the PMI climbed to 52.0 in August from 46.0 in July with output and new orders expanding at the fastest clip since February. That said, employment levels continued to decline albeit at a softer pace than in July and foreign demand remained depressed amid a fragile global economic panorama.

Commenting on the latest PMI data, Shreeya Patel, economist at IHS Markit, said:

“August highlights another month of challenging operating conditions in the Indian services sector. Sustained periods of closure and ongoing lockdown restrictions in both domestic and foreign markets have weighed heavily on the health of the industry […] That said, the survey showed signs of a potential recovery. Business sentiment was neutral after being negative in the previous three months and employment fell at the softest pace since March.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest