The covid surge is set to delay the recovery in the economy and indicators are already coming in. Factory output as measured by the manufacturing PMI hit a 7-month low in March.
The Nikkei Manufacturing Purchasing Managers’ Index of 55.4 last month from February's 57.5, even though for the last 8 months the index indicates an expansion, the pace of growth is slowing.
IHS Markit that compiles the index highlighted that with COVID-19 restrictions expanded and lockdown measures re-introduced in many states, Indian manufacturers look set to experience a challenging month in April.