March Manufacturing PMI Declines To 4-Month Low

As per a private survey notified on Wednesday, India's manufacturing activity for the month of March slowed to a 4-month low as economic activity virtually came to a standstill on the back of nationwide lockdown imposed to curb Covid 19 spread.

March Manufacturing PMI Declines To 4-Month Low

India's manufacturing PMI or Purchasing Managers' Index fell to 51.8 in March from 54.5 in February, according to data analytics firm IHS Markit. A figure over 50 point to expansion, while a sub-50 level signals contraction. IHS Markit keeps track of new orders, jobs, delivery time of suppliers, stock of purchases for close to 400 manufacturing companies.

IHS Markit economist Eliot Kerr suggested that pain for manufacturing companies in India is imminent from new export orders as well as future activity indices, both of which indicate dwindling global demand as well as weakening domestic confidence
"Should the trajectory of injections continue in the same vein, the Indian manufacturing sector can expect a much sharper negative impact in the coming months, similar to the scale seen in other countries," he added.

Due to the impact on economic activity on account of coronavirus pandemic, most economists have projected contraction in economic growth in Q1FY21.

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