India city Mumbai covid-19 economy Government infection India city Mumbai

Services PMI: Unlock 1.0 brings some relief but revival far away

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MUMBAI: With the lockdown relaxed considerably in most of India, economic activity is slowly creeping up. The headline services purchasing manager's index (PMI) reading for May was at 12.6, up from the historic low of 5.4 in April.

A reading below 50 denotes contraction while that above shows expansion in activity. This bounce was expected as lockdown restrictions were eased during the second and third phase.

In fact June onwards, excluding big cities, businesses in most regions are expected to resume operations and this number will likely show sharp improvements in the coming months.

The government announced last month that it would slowly allow businesses to open up. Small shops to even malls have now been allowed to reopen beyond

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