Context:

India’s manufacturing sector activity contracted at a slightly faster pace in July as demand conditions remained subdued amid prolonged closures.

The headline seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) stood at 46 in July, down from 47.2 in June. This is the fourth straight month of contraction for the Indian manufacturing sector.

Purchasing Managers' Index

• The Purchasing Managers Index (PMI) is a measure of the prevailing direction of economic trends in manufacturing.
• The PMI is based on a monthly survey of supply chain managers across 19 industries, covering both upstream and downstream activity.
• The value and movements in the PMI and its components can provide useful insight to business decision makers, market analysts, and investors, and is a leading indicator of overall economic activity in the U.S.

Reference:

https://www.thehindu.com/business/Industry/manufacturing-contracts-for-fourth-straight-month-july-pmi/article32262101.ece

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