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Mumbai9 minutes ago
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In most states of the country, the lockdown-like situation has had an impact on manufacturing. Because of the decline in demand, the order received by companies has come down drastically. The IHS Markit India Manufacturing Purchasing Managers Index (PMI) fell to 50.8 in May. It was at 55.5 in April. Being above 50 here means positive growth.
The major reason for the decline in manufacturing growth
Manufacturing growth in the country is the lowest since May last year in July. Even during that time the PMI was slightly above 50. IHS Markit’s economic associate director Paulina de Lima said key indicators of sales, production and input purchases weakened significantly in May. As a result, the rate of manufacturing growth has come down to the lowest level in 10 months.
The pace of receiving new orders fell to the lowest level in 10 months
He said that new demand, orders and export contracts required a modest growth, but production or sales did not get much support from it. The pace of new orders has come down to the lowest level since August 2020. In the second wave of the Corona epidemic, the availability of raw materials to the companies remained weak.
had a bad effect on employment and the economy
De Lima said that production in factories has a direct impact on business investment and the workers who work. The country’s GDP grew by 1.6% from January to March 2021, according to government data released on Monday, but remained at 7.3% during the entire financial year 2020-21, the biggest decline in four decades.