Factory activity slows as Covid worry drags
- ByAyushi Ray | September 2, 2021
Factory activity slows as Covid worry drags. Manufacturing activity expanded for the second straight month in August, but the pace of growth remained muted as demand showed signs of weakness due to the pandemic’s impact, a survey showed. Data released by analytics firm IHS Markit showed the purchasing managers’ index (PMI) for the manufacturing sector declined to 52.3 in August from 55.3 a month earlier but stayed above the 50-level, separating expansion in activity from contraction. PMI is compiled based on responses from purchasing managers of around 400 manufacturers. In PMI parlance, a print above 50 means expansion while a score below 50 denotes contraction.
IHS Markit said that despite the expansion, the headline figure indicated a softer rate of growth. Growth was curbed by the pandemic and elevated price pressures, it said. Some companies suggested that favourable market conditions and fruitful advertising boosted demand for their goods, the statement said. Others noted that sales fell due to the pandemic. August data pointed to back-to-back increases in new export orders, but here too, growth lost momentum, the statement said. Indian manufacturers also signalled a rise in cost burden.
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