India’s manufacturing sector’s growth sequentially slowed down in January 2022 due to the third wave of Covid-19 pandemic.
The seasonally-adjusted IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) came in at 54 (index reading).
The PMI ranges between 0 and 100, with a reading of above 50 indicating an overall increase compared to the previous month.
In December 2021, the seasonally-adjusted index had risen to 55.5.
The PMI report said January’s growth was the weakest improvement in the health of the sector since last September.
Pollyanna De Lima, Economics Associate Director at IHS Markit, said: “The latest PMI results indicated that the new wave of Covid-19 had a mild impact on the performance of the Indian manufacturing sector.
“A number of measures such as output, new orders and input buying remained in expansion mode. Although growth rates eased, they were historically strong.”
As per the PMI report, companies sought to rebuild input stocks by purchasing additional raw materials and semi-finished items, but uncertainty surrounding growth prospects resulted in further job shedding.
“Survey participants were concerned that production growth would be hampered by inflationary pressures, the escalation of the pandemic and any new restrictions it would bring. The overall level of business confidence tumbled to a 19-month low.”