New Delhi: Producers in the country continued to have a decline in manufacturing activity in May, with a continuous decrease in new orders. At the same time, companies are rapidly reducing the workforce due to weak manufacturing activities. It was said on Monday in a monthly survey report. Earlier, there was a record decline in manufacturing activity in the month of April.
The IHS Market India Manufacturing Purchasing Managers’ Index (PMI) stood at 30.8 in May from 27.4 in April. This marks another major decline in the country’s manufacturing sector. Although it is slightly softer than April. The index registered a decline in the month of April compared to the previous 32 months.
According to PMI, if the index is above 50, it indicates expansion while indicating a decline below that. Elite Kerr, an economist at IHS Markit, said, “The latest PMI data shows that manufacturing output has declined again in May. Earlier, there was a record decline in April which was the result of stagnant business activity. ”According to the survey, production was down due to weak demand following a record decline in April.
As a result, companies have rapidly reduced workforce. For the first time during the data being collected for the last 15 years, the number of such employees has seen a decrease. “A further decline in manufacturing activity in May suggests that companies may face challenges in recovering from the crisis,” Kerr said. Demand remains weak, while uncertainty about the corona virus epidemic still persists. “Meanwhile, according to Health Ministry data, Kovid-19 has killed 5,394 people so far, and more than 1.90 lakh have been infected.
