A gauge of India’s services sector contracted for the first time in eight months, with the intensification of the Covid-19 crisis causing renewed declines in new business and output.
The India Services Business Activity Index, compiled by IHS Markit, stood at 46.4 in May compared with 54 in April 2021, according to a media statement. A reading above 50 indicates expansion in business activity.
The Composite PMI Output Index, too, dropped to 48.1 from 55.4 in April, a reading indicative of a moderate pace of reduction.
While PMI data released at the start of the month showed that the manufacturing industry managed to keep its head above water in May, the service sector struggled as the pandemic escalated. the release said.