Manufacturing PMI: Relief News For The Economy

Manufacturing PMI: Relief news for the economy, growth in manufacturing activities in August.PMI data growth of more than 50 whereas the data below it shows contraction. There was an increase in manufacturing activity in the country after a gap of four months due to a spurt in domestic demand after the relaxation of lockdown restrictions. However, in spite of this, the period of retrenchment continues in companies.

This has been revealed in a private business survey. The Nikki Manufacturing Purchasing Index (PMI) compiled by IHS Market stood at 52 in August. Earlier it was at 46 in the month of July. PMI data growth of more than 50 whereas the data below it shows contraction. India’s manufacturing PMI has been above 50 marks for the first time since March, reflecting growth.

Shreya Patel, the economist at IHS Market, said, “The August figures underline the positive growth in the health of India’s manufacturing sector.” This indicates a recovery in the second half. ”

Foreign demand contraction for the sixth consecutive month

Talking about PMI sub-indexes, demand and production reached their highest level since February. In this way, for the first time in five months, manufacturing activities have seen an increase. However, contraction in foreign demand has been seen for the sixth consecutive month. This is the longest-running contraction since March 2009.

Continuation of layoffs in jobs continues

This latest report by IHS Market states that companies have laid off their workforce for the fifth consecutive month. It is noteworthy that the livelihood of millions of people has been affected due to the conditions born due to coronavirus. The virus is currently spreading in India faster than any other country in the world. According to this report, despite the cost price rising at the fastest pace in the last two years, companies have reduced the price of their goods to increase demand.