Manufacturing sector falls further in June, lay-offs continue
The manufacturing sector of India saw a decrease in production and new orders. Therefore, companies continued to lay off in June, after the historic retrenchment in May.
Mumbai: The manufacturing sector of India saw a decrease in production and new orders in June compared to May this year. The companies continued to retrench the workforce on a large scale.
The Purchase Manager Index (PMI) report for the manufacturing sector was released here on Wednesday by IHS Market. The index released on a month-on-month basis was recorded at 47.2 in June, implying that manufacturing activity declined compared to May.
The index’s fall below 50 indicates a decline over the previous month and growth above 50 while the 50 mark indicates stability. There was a steep decline in April compared to March and in May compared to April. The decline in June was less than in May. The index was recorded at 27.4 in April and 30.8 in May.
The report said that the companies continued to lay off in June, after the historical retrenchment in May, though it was lower than the previous month. However, the pace of retrenchment was still quite high in June. Companies have laid off employees due to slackening demand caused by sluggish economic activity.