July manufacturing PMI falls to 46; overall activity shrinks for 4th month

Job losses continue as domestic demand struggles as lockdowns return in states and export orders vanish

India’s manufacturing activity hit a speed bump in July after being on the slow road to improvement in the previous two months as regional lockdowns severely held back demand, leading to contraction in output.

According to the monthly IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) survey released on Monday, manufacturing PMI stood at 46 in July, down from 47.2 in June.

In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction. PMI had fallen to a historic low of 27.4 in April, but had been steadily climbing since.

“The survey results showed a re-acceleration of declines