“Companies noted that the pandemic was the key factor weighing on growth during November, with Covid-related uncertainty also restricting business confidence,” said Pollyanna De Lima, economics associate director at IHS Markit. The November PMI, however, indicated a sustained recovery in the sector, despite some slowing of momentum.
A reading above 50 points indicates expansion. The PMI
is a month-over-month indicator, showing improvement over the previous month, and not over the previous year.
As such, activities in November could not keep pace with October, but that was still higher than pre-Covid activities. For instance, the index stood at 54.3 in February. In fact, the reading was below November 2020’s figure during the period between April 2013 and February 2020. After February, PMI
showed contraction till August.
“The Indian manufacturing sector remained on the right path to recovery, with strong growth of new orders and output sustained during November,” De Lima said. The softening in November does not represent a major setback, as it was only lower than October’s figure, De Lima added. “A spike in Covid-19 cases and the possibility of associated restrictions could undermine the recovery.”
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.