The manufacturing PMI has shown a sharp increase from 52 in August to 56.8 in September, the highest in eight years.
After six months of severe stress triggered by the toughest lockdown so far, some high-frequency indicators point towards economic recovery but there are signs that this revival is fragile, Brickwork Ratings said.
It estimated that the economy is likely to contract by 13.5 per cent in the second quarter (July-September), and the contraction in FY21 (April 2020 to March 2021) is likely to be around 9.5 per cent unless the government takes immediate initiative to revive the economy.
“After six months of severe stress triggered by the severest lockdown so far, there finally is some good news on the economy. Some high-frequency indicators point towards economic recovery,” it said in a report.
The manufacturing PMI has shown a sharp increase from 52 in August to 56.8 in September, the highest in eight years.
Source: livemint
