‘Manufacturing PMI slips in Aug on Covid curbs’

While GDP growth in the June quarter bounced back by 20.1 per cent, growth of manufacturing production in India was curbed in August by the pandemic and rising input costs.

The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) was recorded at 52.3 in August, down from 55.3 in July, indicating a softer rate of growth that was subdued in the context of historical survey data.

According to IHS Markit, a softer upturn in sales led companies to pause their hiring efforts, with business confidence dampened by concerns surrounding the damaging impact of Covid-19 on demand and firms’ finances. However, with order books still expanding and businesses retaining optimistic growth projections, stock-building efforts continued and additional materials were bought, it said.