A surprising news is emerging on the Indian economy front. There has been a huge slowdown in the pace of manufacturing and service sector of the country’s private sector during the month of July. According to recent data, India’s Composite Purchasing Managers’ Index (PMI) has fallen to its lowest level in the last 3 years. Market analysts believe that this decline has been recorded due to decreased demand and increasing costs.
Both manufacturing and service sectors were affected
The biggest impact of this decline has been on the main business pillars of the country. While on one hand the pace of receiving new orders has slowed down, on the other hand companies are facing challenges in their operations. Experts say that due to global uncertainties and inflationary pressure in the domestic market, private companies have started exercising some caution in new investment and production, the direct effect of which is clearly visible in this month’s figures.
What do economic experts say?
According to economic experts, even though this decline is at the lowest level in 3 years, there are still hopes of recovery in the Indian market. This sector may get a boost again due to increase in demand in the coming festive season. However, given the current situation, private companies will need to change their strategies and focus on controlling costs to overcome the slowdown in the coming months.
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