empty
 
 

2020.06.0306:27:00UTC+00India Service Sector Contracts In May

India's service sector contracted sharply in May as economic effects of the coronavirus, or Covid-19, pandemic impaired business operations, restricted consumer footfall and collapse in demand, survey results from IHS Markit showed on Wednesday.

The services Purchasing Managers' Index rose to 12.6 in May from 5.4 in April. Any reading below 50 indicates contraction in the sector.

Output declined sharply due to extended business shutdowns and weak demand condition. New work intakes decreased in May and sales dropped due to the measures imposed to control the spread of Covid-19.

New business collapsed in May with companies reporting foreign demand falling compared to April.

Employment reduced in May with the rate of job shedding remaining strong by historic comparison.

Business sentiment deteriorated in May and output expectation for the next 12 months slumped to the most negative since the record began in December 2005.

Price data showed deflationary trends across both input and output costs. Output prices declined at a softer rate.

The composite index rose to 14.8 in May from 7.2 in the previous month.

"With economic output set to fall enormously in the first half of 2020, it is clear that the recovery to pre-COVID-19 levels of GDP is going to be very slow," Joe Hayes, an economist at IHS Markit, said.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback