Activity in the country’s manufacturing sector held steady in April against the backdrop of a raging pandemic but factory orders and production rose at their slowest rates in eight months, the survey showed on Monday.
The IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) was at 55.5 in April, largely unchanged from March’s reading of 55.4 and indicating a solid improvement in the health of the sector. Consumer goods were the strongest-performing category, followed by capital goods and then intermediate goods. The 50-point mark separates expansion from contraction. The survey is compiled from responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers and is considered as a key data by policymakers.
Economists cautioned that the sharp surge in Covid cases could hurt the recovery in the manufacturing sector.