Factory activity shrinks for first time in 11 months amid COVID-19 crisis

The Nikkei Manufacturing Purchasing Managers` Index, compiled by IHS Markit, declined to an 11-month low of 48.1 in June from May`s 50.8, moving below the 50-level separating growth from contraction.

New Delhi: Factory activity contracted for the first time in almost a year in June as restrictions to contain the deadly second wave of the coronavirus triggered declines in demand and output that pushed firms to cut more jobs, a private survey showed on Thursday. Although many Indian states have recently relaxed some containment measures following a decrease in daily cases the rapid emergence of the new Delta Plus variant has raised concerns over the nation`s already weak economic outlook. The Nikkei Manufacturing Purchasing Managers` Index, compiled by IHS Markit, declined to an 11-month low of 48.1 in June from May`s 50.8, moving below the 50-level separating growth from contraction.