NEW DELHI: Business activity across India’s services sector contracted sharply in May after a historic decline in April as the coronavirus-induced lockdown led to collapse in consumer demand.
The services Purchasing Manager’s Index (PMI) released by IHS Markit stood at 12.6 in May, slightly better than 5.4 recorded in April, but still way below the 50-mark that divides contraction from expansion. “Spare capacity continued to rise, albeit to a far lesser degree than in May as prolonged shutdowns led to a rise in incomplete work at some companies.
Meanwhile, employment continued to fall in response to weak demand and expectations of further challenging conditions," IHS Markit said.