Services activity in May: Services activity picks up in May due to COVID-19, firms cut jobs: PMI

Services activity in May: Services activity picks up in May due to COVID-19, firms cut jobs: PMI

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New Delhi: Business activities in India’s service sector fell substantially during May as a monthly survey on Wednesday led to the deteriorating economic impact of coronoviruses, prohibition of business operations, prohibiting consumer footfall and demand for collapse. where did it go.
The IHS Market India Services Business Activity Index stood at 12.6 in May.
Although headline data rose to an unprecedented April level of 5.4, it remained at a level that was unique in the 14-year data collection that preceded the coronovirus epidemic and pointed to an extreme decline in services activity across India, the survey Has been mentioned.
According to the IHS Market India Services Purchasing Managers’ Index (PMI), print above 50 means expansion and a score below indicates contraction.
IHS Markit economist Joe Hayes said, “Service sector activity in India still continues in effect, the latest PMI data suggest, as production once again plummeted during May.”
Hess further noted that “demand for services, both domestically and overseas, continued in May as customer businesses remained closed and footfall was well below normal levels”.
According to the survey, production rapidly sank due to extended trade offs and very weak demand conditions.
Meanwhile, employment continued to decline in response to weak demand and expectations of further challenging circumstances.
The Composite PMI Output Index, which measures combined services and manufacturing output, indicated a more serious contraction in private sector business activity during May.
The survey stated that between 7.2 and 14.8 in April, the latest reading was consistent with a decline in output that was unique, prior to the outbreak of COVID-19.
“With the steep decline in economic output in the first half of 2020, it is clear that the recovery of pre-COVID-19 levels of GDP (GDP) is going to be very slow”, Hess said.
India was already in the grip of an economic downturn as the festival crisis among shadow lenders and the recession hit consumer demand and private investment. Its GDP grew by 4.2 percent in 2019-20, the slowest pace in 11 years.
Meanwhile, Moody’s Investors Service on Monday lowered India to the lowest investment level and kept it on a negative watch, mainly because the country faces prolonged periods of slowing growth relative to its potential and rising debt levels .
Moody’s Investors Service, S&P Global Ratings and Fitch Ratings are predicting a fiscal deficit setback for India in four decades following the first contraction in GDP and COVID-19 disruptions.
Meanwhile, Prime Minister Narendra Modi on Tuesday insisted that India would survive the coronovirus epidemic and be back on track with the government’s decisive policies.


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