India's manufacturing PMI slows to 47.9 in July

It’s the lowest since February.

India posted a 47.9 Manufacturing Purchasing Managers' Index (PMI) for July, down from 50.9 in June.

According to IHS Markit, this has been the lowest since February 2009, which highlights deteriorating business conditions in the country.

The drop was felt across three broad areas of manufacturing, with intermediate goods producers the most affected.

"Manufacturing growth in India came to a halt in July, with the PMI down to its lowest mark in almost eight-and-a-half years amid widespread reports that the sector has been adversely affected by the implementation of the goods and services tax (GST). The reductions in output, new orders and purchasing activity were all the steepest since early-2009," said IHS Markit principal economist Pollyana De Lima.

The rise of new export orders for the month weakened June's eight-month high, whilst business sentiment was the highest in 11 months.

Lesser output requirements also reduced purchases, turning the contraction of buying levels the quickest in 8.5 years.

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