Factory activity shrinks for first time in almost a year amid Covid crisis

India's manufacturing sector activity contracted for the first time in June after almost a year due to the ongoing Covid-induced economic crisis.

India's manufacturing sector activities contracted for the first time in 11 months in June as rising coronavirus cases and strict containment measures adversely impacted demand as well as resulted in job losses, a monthly survey said on Thursday. The seasonally-adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) declined to 48.1 in June from 50.8 in May. The index fell below the critical 50.0 marks for the first time since July 2020. In PMI parlance, a print above 50 means expansion while a score below 50 denotes contraction.