For the first time after 11 months, PMI decreased in June, know how much fall?

New Delhi: Manufacturing activity declined in June for the first time in 11 months due to the rise in the number of coronavirus cases and strict local restrictions, leading to the loss of a large number of jobs. The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) declined to 48.1 in June from 50.8 in May. Let us tell you that if the PMI index is less than 50, then it is believed that economic activities have slowed down.

The index fell below the 50 mark for the first time since July 2020. A score above 50 in PMI language means expansion in activities, while a score below 50 indicates contraction.

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According to the latest data, there is a fresh contraction in orders, production, exports and purchases of factories. Apart from this, business optimism declined during the month under review, and people also faced unemployment. The COVID-19 restrictions also slashed international demand for Indian goods and led to a drop in new export orders for the first time in ten months.

Pauliana De Lima, Economic Joint Director, IHS Markit, said, “The COVID-19 outbreak in India had a devastating impact on the manufacturing economy. In June, new orders, production, exports and purchases were disrupted.” Lima, however, said that the rate of contraction in all respects was lower than in the first lockdown.

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