India’s Manufacturing to Shrink as Cash Shortages Cut Demand
- Nikkei December PMI indicates first contraction since 2015
- ‘January data will be key’ to assess ability to rebound
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A private gauge indicates that India’s manufacturing sector will shrink for the first time in a year as Prime Minister Narendra Modi’s unprecedented clampdown on cash hurts demand.
The Nikkei India Manufacturing Purchasing Managers’ Index was at 49.6 in December, a report showed on Monday, the lowest since December 2015. A number below 50 indicates a contraction.