Source: Bloomberg, MOFSL / Business Insider India / Flourish
India’s manufacturing purchase manager’s index (PMI) saw an increase of 50% in June when compared to May. However, the recent lockdown extensions in some parts of the country and the rising COVID-19 cases threaten to slow down India’s manufacturing PMI again.
“For a start, the breakdown of the manufacturing PMI suggests that output is recovering faster than employment. While the new orders component jumped from 21.4 in May to 46.4 in June, the employment component only edged up from 42.7 in May to 44.2 in June,” said Darren Aw, Asia economist at the London-based Capital Economics.