Despite the relief in the local lockdown, there has been a contraction in the PMI Manufacturing Index in the month of June. The Manufacturing Index stood at 48.1 in June as against 50.8 in the month of May.
After 11 months it has shown contraction.
PMI Manufacturing Index for June: Due to the new wave of Corona, there was a decline in manufacturing activity in the month of June. The impact of the second wave was so severe that the PMI for manufacturing declined to 48.1 in the month of June. It has declined for the first time in the last 11 months.
When the PMI index is above 50, it shows growth, while below 50 it shows a decline. The PMI for manufacturing sector in the month of May was 50.8. It has been said in the report that due to the fall in demand, production has been affected, due to which the overall index has declined. Economist Polima de Lima of IHS Markit said that the Corona Crisis continues in India. Companies are not able to know how long this crisis will continue. This is having a direct impact on the growth outlook.
Eight core infra sector up 16.80 percent in May
Here in May, a growth of 16.8 percent has been registered in the eight core infra sector. This acceleration has come compared to May 2020. Core sector output had registered a rise of 60.9 per cent in April. Accordingly, it has declined in May because local lockdown was imposed in different parts of the country due to the new wave of corona.
21.4 percent decline was recorded last year
In May last year, due to the nationwide lockdown implemented to control the spread of COVID-19 infection, there was a big decline of 21.4 percent in the production of these eight basic industries. In March this year, growth of 11.4 per cent was achieved in these industries and 60.9 per cent in April. The main reason for the high growth achieved in April 2021 is the low relative base from a year ago. In April 2020 too, business activities were completely closed due to the nationwide lockdown.
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