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.