India: Private-sector PMI increases in July, but remains in contractionary territory
The composite Purchasing Managers’ Index (PMI) produced by IHS Markit increased to 49.2 in July from 43.1 in June. As a result, the PMI remained below the 50-threshold, indicating a decrease in business activity from the previous month.
The services PMI rose to 45.4 in July from 41.2 the month prior, as new orders and output declined at a slower rate. Similarly, on the manufacturing side, the PMI jumped to 55.3 in July from 48.1 in June, due rising output, new orders, and headcounts.
Commenting on the latest PMI data, Pollyanna De Lima, economics associate director at IHS Markit, said:
“The current COVID-19 environment continued to weigh on the performance of the service sector that is so crucial to the Indian economy. July data was somewhat disappointing, with incoming new business and output falling solidly over the month, but there was at least a slowdown in rates of contraction.”