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India PMI contracts for the first time in a year

Staff Writer | January 2, 2017
A gauge of manufacturing activity in India contracted for the first time in an year in December as a cash shortage in the South Asian economy hurt new orders.
India workers
Economy in India   India Manufacturing Purchasing Managers
The seasonally-adjusted India Manufacturing Purchasing Managers' Index fell to 49.6 from 52.3 in November, survey figures released by IHS Markit and Nikkei showed Monday. A figure above 50 indicates expansion while a reading below that signals contraction.

The lower reading could deepen concerns that a slowdown in Asia's third-largest economy triggered by the government's move in November to withdraw overnight 86% of bank notes in circulation may last longer than expected.

The move dried up the flow of cash, bringing business activity to a grinding halt.