Manufacturing is one of the key sectors badly hit by the COVID-19 lockdown.
Because of the continued lockdown, India’s manufacturing performance has declined badly to an all-time low.
According to the latest market research reports, declined further to 27.4 in April 2020 from 51.8 in March 2020.
While PMI reading less than 50 indicates sharp fall in business activity, the latest data records indicate a deep decline in manufacturing PMI, something unseen in the last 15 years.
“In an environment of severely reduced demand, new orders fell for the first time in two-and-a-half years and at the sharpest rate in the survey’s history, far outpacing that seen during the global financial crisis,” the IHS market survey said in a statement.
According to the survey, this has moved manufacturing companies to cut down their employee strength in April 2020.
Meanwhile, the input and output costs have taken a hit as the suppliers offered discounts to secure orders.
In contrast, the delivery speeds have increased further due to rapid changes in the supply chain.
“Meanwhile, there was evidence of unprecedented supply-side disruption, with input delivery times lengthening to the greatest extent since data collection began in March 2005,” says Eliot Kerr, Economist, IHS Markit.
However, the outlook for the 12-month period shows a positive trend provided the ease in lockdown and restrictions.
Not just India, almost every country has seen a fall in its manufacturing PMI due to the lockdown.
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