PMI Manufacturing


  • Due to lockdown, the industrial activities are in standstill.
  • In GVA term, the manufacturing sector is expected to record a de-growth of (-)4.5% in FY21.
  • A marginal recovery is expected in H2 of the current financial year only.
  • Few industries pertaining to health sector are expected to post healthy growth.
  • However, overall industrial activities are expected to remain weak.
  • Lower commodity prices and recovery in private consumption will make the sectors profitable especially the sectors in the upper side of the supply chain.
  • Due to disruption in global supply chain, new orders received from external market for the domestic firms are expected to remain mute.
  • Due to fall in new orders and sales, the PMI index is expected to remains below 50 in past two months.
  • Ideally, the PMI index echoes the market sentiment. As positive sentiment in the sector is expected during the end of this financial, the index is expected to accelerate in coming months.