India's manufacturing activity sees the third successive month of contraction in June, however, the contraction was the softest since March as the nationwide lockdown was lifted. According to IHS Markit, PMI (Purchasing Managers' Index) for the month of June rebounded to 47.2 from 30.8 in May. In comparison, the index was seen at 52.1 in June 2019. A reading above the 50-mark means an expansion while that below 50 indicates contraction.
Output levels rose to the highest level since March 2020 at 46.7 from 19.6 seen in May. New orders too have risen to a three-month high in the month of June.
"However, the recent spike in new coronavirus cases and the resulting lockdown extensions have seen demand continue to weaken. Should case numbers continue rising at their current pace, further lockdown extensions may be imposed, which would likely derail a recovery in economic conditions and prolong the woes of those most severely affected by this crisis," said Eliot Kerr, economist at IHS Markit.