India’s services Purchasing Managers’ Index (PMI) plummeted to 5.4 in April from 49.3 in March The worst may be behind us in so far as the direct health impact of covid-19 is concerned, but its economic effects are only just starting to show.
India’s services Purchasing Managers’ Index (PMI) plummeted to 5.4 in April from 49.3 in March. A reading below 50 indicates a contraction.
This is the biggest contraction on record and bodes poorly for the economy, since the sector contributes about three-fifths of India’s gross domestic product.
Worryingly, though, there may be more pain in store, as cases of covid-19 are still rising, which could come in the way of further relaxations of India’s lockdown.