14.5 C
London
Wednesday, July 8, 2020

India’s Factory Activity Contracts for Third Straight Month in June

- Advertisement -


A worker displays a face mask before packing it inside a factory on the outskirts of Ahmedabad, February 3, 2020. REUTERS/Amit Dave/Files

A worker displays a face mask before packing it inside a factory on the outskirts of Ahmedabad, February 3, 2020. REUTERS/Amit Dave/Files

The virus has infected over half a million people in the world’s second-most populous nation, stalling economic activity, but Wednesday’s survey suggested the worst may be over for the economy, at least for now.

  • Reuters Bengaluru
  • Last Updated: July 1, 2020, 11:13 AM IST

India’s manufacturing activity contracted for a third straight month in June, albeit at a much shallower pace, as demand and output continued to suffer from three months of lockdowns to quell the spread of the coronavirus, a private survey showed.

The virus has infected over half a million people in the world’s second-most populous nation, stalling economic activity, but Wednesday’s survey suggested the worst may be over for the economy, at least for now.

While the Nikkei Manufacturing Purchasing Managers’ Index, compiled by IHS Markit, increased to 47.2 last month from 30.8 in May it was still below the 50-mark separating growth from contraction. Analysts polled by Reuters had expected 37.5.

“India’s manufacturing sector moved towards stabilisation in June, with both output and new orders contracting at much softer rates than seen in April and May. However, the recent spike in new coronavirus cases and the resulting lockdown extensions have seen demand continue to weaken,” noted Eliot Kerr, an economist at IHS Markit.

The April-June period was the worst quarterly performance since the PMI survey began in March 2005, in line with a Reuters poll predicting Asia’s third-largest economy contracted last quarter for the first time since the mid-1990s. [ECILT/IN]

Input and output prices declined for a third consecutive month in June, and manufacturers continued to cut staff.

However, a continued decline in price pressures might provide additional breathing space for the Reserve Bank of India to announce further easing measures. It has already cut its repo rate by a cumulative 115 basis points since the lockdown started on March 25.

“Should case numbers continue rising at their current pace, further lockdown extensions may be imposed, which would likely derail a recovery in economic conditions and prolong the woes of those most severely affected by this crisis,” added Kerr.

Still, optimism about the coming 12 months hit a four-month high in June.




Source link

- Advertisement -

Latest news

Mitch McConnell eyes virus aid as evictions, benefits cuts loom

Washington • An eviction moratorium is lifting. Extra unemployment benefits are ending. Parents are being called to work, but schools...
- Advertisement -

Kenya Moore Releases Iconic Commercial For Kenya Moore Haircare — See The Clever Ad That Has RHOA Fans Gagging

Real Housewives of Atlanta fans will remember one of Kenya Moore’s most talked-about scenes his season. She has turned the moment into a...

Refusing to wear a face mask should be as taboo as drink driving, experts say

Will face masks now be compulsory in ALL shops? Matt Hancock...

Denver Nuggets promote Calvin Booth to GM

Booth, 44, is a former NBA who player joined the organization in 2017 as an assistant general manager. ...

Top Tips on How to Make Your College Assignments Easy

When in college, you have to complete the assignment tasks issued by your instructors. By thoroughly assessing these papers, the professors can tell...

COVID-19: Committee threatens to sack LGAs sanitation chairmen

The Chairman, Yobe State COVID-19 Committee on Prevention and Control has threatened to sack any local government environmental and sanitation committee chairman found...

Related news

Refusing to wear a face mask should be as taboo as drink driving, experts say

Will face masks now be compulsory in ALL shops? Matt Hancock...

Denver Nuggets promote Calvin Booth to GM

Booth, 44, is a former NBA who player joined the organization in 2017 as an assistant general manager. ...

Top Tips on How to Make Your College Assignments Easy

When in college, you have to complete the assignment tasks issued by your instructors. By thoroughly assessing these papers, the professors can tell...

COVID-19: Committee threatens to sack LGAs sanitation chairmen

The Chairman, Yobe State COVID-19 Committee on Prevention and Control has threatened to sack any local government environmental and sanitation committee chairman found...

’90 Day Fiance’ star Nicole Nafziger claps back at claim she’s a “bad mom” for not finding a way to return home from Morocco

90 Day Fiance star Nicole Nafziger is firing back at people claiming she's a "bad mom" for staying in Morocco with fiance Azan...

30-year-old Bridge Washed Away in Junagadh as Heavy Rains Lash Gujarat

As heavy rains lashed parts of Gujarat on Monday, flood-like situation was reported with Khambhalia taluka in Devbhoomi Dwarka district received 487 mm...

Gio Gonzalez Eager To Pitch For White Sox 16 Years After Drafting Him – CBS Chicago

CHICAGO (CBS) — COVID-19 is causing more testing problems in baseball as more teams cancel practice, but the White Sox worked out on the...

Russian troops to get S-500 air defense systems in coming years – Military & Defense

MOSCOW, July 8. /TASS/. The Russian military will get the new-generation S-500 air defense systems in coming years, the commander of Missile Defense...

Leave a Reply

%d bloggers like this: