Manufacturing PMI: There has been a slight improvement in the manufacturing sector activities in India during the month of April. Manufacturing PMI remained stable at 55.5 in April as conditions improved for manufacturing in the country. The manufacturing sector’s PMI stood at 55.4 in March, a seven-month low. Increase in manufacturing PMI above 50 and decrease below 50 indicates a decrease. The survey states that companies have increased production with further improvement in demand.
The second order of COVID-19 has reduced the pace of new orders and output to an 8-month low. Pauliana Di Lima, Associate Director (Economics) at IHS Market, says that the deepening of the COVID-19 crisis led to further moderation in the growth of new orders and outputs. Lima said that the problems that manufacturers are facing cannot be ignored. As far as cost is concerned, the participants in the survey have indicated a sharp increase in cost expenditure.
Job retrenchment rate reduced
According to the survey, production and sales have increased at the slowest pace since last August due to the growing crisis of corona virus, but international orders have increased. New export orders have increased for the 9th consecutive month in April and this increase has been at the fastest pace since October last year. This has happened due to increasing demand for Indian goods abroad. Manufacturing employment continues to decline on the employment front. Sorting continued in the manufacturing sector in April as well. However, the rate of retrenchment was the slowest in the last 13 months.