Factory activity collapsed to its record low in April as the coronavirus outbreak and the lockdown smashed new orders and prompted business closures, a survey showed on Monday, highlighting the pain in the industrial sector and the overall economy.
The April PMI survey pointed to an unprecedented contraction in manufacturing output. The result came amid the lockdown. In an environment of severely reduced demand, new business collapsed at a record pace and firms sharply reduced their staff.
The IHS Markit India Manufacturing PMI slumped to 27.4 in April from 51.8 in March. The reading pointed to the sharpest deterioration in business conditions across the sector since data collection began over 15 years ago. The 50-point mark in the survey separates expansion from contraction. The survey is compiled from responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers.