NEW DELHI: India’s manufacturing activity contracted sharply in May as the ongoing coronavirus-induced lockdown led to firms reducing their staff numbers at the quickest pace in over 15 years.
The number was, however, slightly softer than in April. The manufacturing Purchasing Manager’s Index (PMI), released by IHS Markit declined to 30.8 in May, slightly better than 27.4 recorded in April.
A figure of above 50 indicates expansion, while a sub-50 print signals contraction. The survey tracks new orders, output, jobs, suppliers’ delivery time, and stocks of purchases for around 400 manufacturers. “In a sign of further demand weakness, new orders placed with goods producers continued to fall after April's record contraction.