Covid-19 crisis: Services activity shrinks for first time in 8 months

Firms cut jobs at fastest pace in 6 months as local lockdowns hurt demand

Activity in the services sector contracted in May for the first time in eight months as localised lockdowns hurt demand and international orders dropped, a private survey showed on Thursday.
 
The IHS India Services Business Activity Index showed Purchasing Managers’ Index (PMI) dropped to 46.4 in May against 54 in April.
 
The 50-point mark separates expansion from contraction.
 
“While the 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,” Pollyanna De Lima, Economics Associate Director