Manufacturing output remains at historic lows in May

New Delhi: India's manufacturing output remained at historic low levels, as weak demand due to Covid-19 outbreak led to lower production in the month of May.

Accordingly, the latest reading of seasonally adjusted IHS Markit India Manufacturing PMI index pointed to another substantial decline in the health of the Indian manufacturing sector, "albeit one that was slightly softer than recorded in April".

Consequently, the seasonally adjusted PMI reading inched up to 30.8 in May from 27.4 in April.

According to the survey report, in a sign of further demand weakness, new orders placed with goods producers continued to fall after April's record contraction.

"The rate of decline decelerated but was still the second-fastest since the series' inception in March 2005.

Panellists often mentioned prolonged closures at their clients when explaining the latest reduction in sales," the survey report said.