India’s manufacturing PMI slows to four-month low at 51.8 in March amid coronavirus outbreak

The impact of coronavirus and related lockdown showed up in India’s manufacturing activities, which slowed to a four-month low in March and the outlook for coming months too turned subdued.

The manufacturing Purchasing Managers’ Index (PMI) for India slowed to 51.8 in March from 54.5 in February, according to Nikkei Manufacturing Purchasing Managers’ Index, compiled by IHS Markit.

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A figure above 50 indicates expansion, while a sub-50 denotes contraction.

"The most prominent signs of trouble for Indian manufacturers came from new export orders and future activity indices, which respectively indicated tumbling global demand and softening domestic confidence," said Eliot Kerr, an economist at HIS Markit.

"The Indian manufacturing sector remained relatively sheltered from the negative impact of the global coronavirus outbreak in March, however, there were pockets of disruption and a clear onset of fear amongst firms," he said.

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Kerr added that should the trajectory of injections continue in the same vein, the Indian manufacturing sector could expect a much sharper negative impact in the coming months, similar to the scale seen in other countries.