Slowdown in service sector activities seen in June
There is a period of decline in the activities of the service sector under the pressure of the Corona epidemic. The Purchasing Managers' Index (PMI) for the services sector stood at 41.2 in June, up from 46.4 in May. There has been a sharp decline in activities since July 2020. 50 PMI indicates stability in activity, below that indicates a decrease in activity, and above that indicates an expansion in activity.
Paulina Di Lima, Associate Director of Economics, IHS Markit, said, “Given the current situation of the Corona epidemic in India, it was anticipated that there would be a negative impact on the service sector. June's PMI data shows a sharp decline in new business, output, and employment. Although the situation is better as compared to the first wave. International demand in the Indian service sector continues low. New export orders declined for the 16th consecutive month in June.
Paulina Di Lima, Associate Director of Economics, IHS Markit, said, “Given the current situation of the Corona epidemic in India, it was anticipated that there would be a negative impact on the service sector. June's PMI data shows a sharp decline in new business, output, and employment. Although the situation is better as compared to the first wave. International demand in the Indian service sector continues low. New export orders declined for the 16th consecutive month in June.