India: Private sector PMI ticks down slightly in July
The composite Purchasing Managers’ Index (PMI) produced by IHS Markit eased marginally to 37.2 in July from 37.8 in June. Consequently, the PMI remained below the 50-threshold indicating another decrease in business activity from the previous month.
The services PMI rose to 34.2 in July from 33.7 in June as businesses reported
On the manufacturing side, the PMI dipped to 46.0 in July from 47.2 in June. Commenting on this, Eliot Ker, economist at IHS Markit, said:
“India’s manufacturing sector moved towards stabilization in June, with both output and new orders contracting at much softer rates than seen in April and May. However, the recent spike in new coronavirus cases and the resulting lockdown extensions have seen demand continue to weaken. Should case numbers continue rising at their current pace, further lockdown extensions may be imposed, which would likely derail a recovery in economic conditions and prolong the woes of those most severely affected by this crisis.”